German fund manager KGAL Investment Management has acquired the first development project for its new fund, KGAL Wohnen Core 3, in the form of a residential scheme in Bavaria, Germany.
The investment is the Wohnen am Candidplatz neighbourhood development in Munich-Untergiesing which has around 24,000 m2 of rental space, including 355 residential units. The new building is expected to be completed by the end of 2023.
André Zücker, managing director of KGAL Investment Management said: 'Candidplatz, with its attractive links to the heart of Munich, is an ideal foundation investment for the portfolio of our new residential fund KGAL Wohnen Core 3.
'Thanks to the sustainable combination of refurbishment of existing buildings and energy-efficient new construction, as well as the modern mobility concept, the project fits perfectly with the ambitious ESG profile of our investors.'
The development project will be divided into two construction phases – firstly along Candidstrasse and secondly, Krumpterstrasse 9-23, Hans-Mielich-Strasse 30-36 and Agilolfingerstrasse 35-37. The total site covers 9,883 m2.
The majority of the rental space is for residential use, and the remaining 1,400 m2 will be for commercial use. Among the existing twelve commercial units are a full-range retailer, a daycare centre and four artists' studios.
The Candidplatz site comprises a total of 355 residential units consisting of 151 existing flats, some of which have already been partly refurbished and the remaining will be successively refurbished, and 204 new flats. The latter includes 135 privately financed and 69 subsidised units.
Its public transport connection will be complemented by a modern mobility plan, including bicycle parking, a bike workshop, car-sharing and an underground car park with space for 87 cars.
KGAL Wohnen Core 3 invests in ESG-compliant residential properties with sustainable building fabric in Germany's residential markets. The target equity volume is €500 mln.
Florian Martin, institutional client-focused managing director at KGAL, added: 'The combination of the fund’s clearly defined, research-based investment strategy, commitment to ESG and the rapid implementation of the deal pipeline is proving to be very appealing to our customers.
'They have already invested €445 mln of equity in the KGAL Wohnen Core 3 fund within months of its launch.'
