KINGSTONE Investment Management launches new sustainable residential real estate fund for institutional investors
KINGSTONE Investment Management (KINGSTONE IM) has launched an open real estate AIF for institutional investors (Spezialfonds) with a target size of EUR350 and 400 million in cooperation with INTREAL as Service KVG, a regulated German fund management company.
The KINGSTONE Wachstumsregionen Süddeutschland II fund (KWS II) will, as the fund’s name suggests, invest in growth regions throughout southern Germany, particularly in modern urban quarters. In selecting acquisition targets for the new fund, Munich-based KINGSTONE IM will, for the first time, 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.
This new real estate fund from KINGSTONE IM 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,” explains Dr 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 real estate fund is particularly aimed at financial institutions investing for their own accounts, foundations and pension funds. Institutional investors may subscribe to the fund with an equity investment of EUR3 million or more. KINGSTONE IM has already completed the first round of equity subscriptions totalling approximately EUR80 million, and additional subscription intentions of some EUR 30 million have been submitted. On the investing side, KINGSTONE IM has already secured access to a real estate portfolio representing a total investment opportunity of at least EUR 180 million. “The successful closing of our first equity round in this sizable amount demonstrates the trust which our clients have in our company,” adds Dr 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. “Thanks to our carefully chosen strategic partnerships and the decades of real estate investing experience of our founding shareholders, we have a superb network to draw from,” says Dr Schomberg in explaining the fund’s property acquisition strategy. “This network ensures, most importantly, that we have access to forward deals for top-quality developments.”