Kingstone Investment Management (Kingstone IM) has announced the launch of a new open-ended residential property fund targeting a size of between €350 and 400 mln.
The Kingstone Wachstumsregionen Süddeutschland II fund (KWS II) will invest in growth regions throughout southern Germany, particularly in modern urban quarters. In selecting acquisition targets for the new fund, Munich-based Kingstone will be applying the sustainability criteria established by a sustainability bank. Real estate purchase will be screened against ecological, economic and social criteria. The factors include, for example, the energy and resource efficiency of the building as well as the quality of its location and immediate surroundings.
The core vehicle will mainly focus on urban neighbourhoods which are largely residential and which offer good local conveniences such as food retailers. ‘Urban quarters are taking on important functions in modern urban societies, because they are able to serve a wide range of needs – daily provisions, short commutes, quality of life – through the mix of usage types,’ added Tim Schomberg, managing partner of Kingstone IM. ‘We prefer to invest in such quarters, or in individual properties in urban quarters, to generate income, which is reliable and sustainable, in every sense of the word.’
The core fund is particularly aimed at financial institutions investing for their own accounts, foundations and pension funds.
Kingstone IM has already completed the first round of equity subscriptions totaling €80 mln, and is in talks for an additional €30 mln. On the investing side, Kingstone IM has already secured access to a real estate portfolio representing a total investment opportunity of at least €180 mln.
‘The successful closing of our first equity round in this sizable amount demonstrates the trust which our clients have in our company,’ added Schomberg. ‘With our sustainable residential property portfolio and the inclusion of local retailers and providers, we can offer our investors an attractive, resilient product even in the current market environment.’
In selecting acquisition targets for the fund, Kingstone IM is primarily concentrating on newly built properties, although acquisitions of existing buildings are also planned.
Kingstone launched its first fund in 2019 with a total fund investment of some €400 mln. Meanwhile 65% of the fund’s capital has already been placed.
