German investment and asset manager KGAL Group has seeded its first open-ended mutual real estate fund, KGAL immoSUBSTANZ, with two retail assets in the Baden-Württemberg region of Germany.
The two properties in Metzingen and Wannweil, near Reutlingen, are both leased on a long-term basis to supermarket chains. REWE is the main tenant in the former while the Wannweil property is wholly let by EDEKA.
The total cost of the assets was around €15 mln. The transfer of ownership took place on March 1.
Andre Zucker, KGAL's managing director of real estate, said: 'The KGAL immoSUBSTANZ fund is off the ground, with two assets that perfectly reflect its investment strategy, as properties that are leased on a long-term basis in locations with potential.'
The KGAL Group, based in Grünwald near Munich, focuses on long-term capital investments for institutional and private investors and has total assets under management of €20.5 bn.
