Germany's KGAL Investment Management has purchased the fifth property for its KGAL Wohnen Core 3 fund, a residential-led scheme in Regensburg, Germany.
Financial details were not disclosed.
The KönigsTOR residential development, which will be constructed in in the Regensburg Königswiesen district, is a 12-storey building with 392 modern flats and six commercial units. The property is scheduled to be completed by mid-2023.
André Zücker, managing director and head of real estate of KGAL Investment Management said: 'The new, high-quality district centre KönigsTOR offers not only three- and four-room flats, but above all modern one- and two-room flats. It therefore precisely meets the demand in Regensburg's residential rental market.
'Another plus for prospective tenants is the sustainable energy concept with its below-average heating costs.'
Heat pumps using geothermal energy as a source cover more than two-thirds of the heating energy requirements, while a CHP plant takes care of almost all the rest.
KönigsTOR is divided into six interconnected buildings. The 392 flats with a total rental space of 19,442 m2 consist of 337 privately financed and 55 subsidised units.
Of the six commercial units in the basement with a total area of 6,431 m2, three have been let on long leases to the Sparkasse Regensburg, full-range food retailer Rewe and food discounter Netto. They are scheduled to be ready for occupancy as early as 2022.
The underground car park beneath the neighbourhood centre offers 640 parking spaces and bicycle stands.
KGAL Wohnen Core 3 invests in sustainable residential properties in Germany's key residential markets.
"In the eight months since the first closing of KGAL Wohnen Core 3, we have already allocated more than 70% of the fund’s €500 mln equity,' said Christian Schulte Eistrup, head of international client business at KGAL Investment Management.
'In addition, we have achieved excellent regional diversification with the five properties in the portfolio, as we are now represented in the west, east, north and south of Germany with KGAL Wohnen Core 3.'
