Investment manager Kingstone Real Estate (Kingstone RE) has acquired three residential property developments located in the German cities of Mannheim, Nuremberg and Fürth on behalf of its Kingstone Bezahlbares Wohnen Deutschland institutional real estate fund, for a total of €74 mln.
The seller is Ten Brinke, which is acting as developer and contractor for the three projects.
The portfolio benefits from construction grants of over €10 mln and low-interest loans in the amount of over €30 mln. The three residential assets comprise a total of 180 residential units, a few small commercial units and a day care centre on a total rental area of around 15,700 m2, with the majority of these units being publicly subsidised.
In Mannheim, 60 apartments are being created in a first-line riverside location by the Altrhein. The development in Nuremberg will have 77 residential units in a central location and the one in Fürth 43 units. The housing estates in Mannheim and Fürth will be built to the KfW efficiency house 55 EE standard, the housing estate in Nuremberg to the KfW efficiency house 40 NH standard.
Simon Lieb, managing director at Kingstone Residential Investments, commented: 'Our new fund met with lively interest among institutional investors. In new construction, subsidised housing is a segment that is currently of interest to investors due to the attractive distribution yields and is considered to be very secure due to the predictable cash flows.'
Hansainvest Hanseatische Investment-Gesellschaft will act as the new fund’s third-party AIFM.
