Saturday, 15 March 2025
KINGSTONE Real Estate (KINGSTONE RE), has acquired three residential development projects located in Mannheim, Nuremberg, and Fürth. The purchase, valued at approximately €74 million, marks a strategic expansion for KINGSTONE’s newly launched institutional real estate fund, “KINGSTONE Bezahlbares Wohnen Deutschland.” The seller, Ten Brinke, is both the developer and contractor for the projects.
The acquisition encompasses 180 residential units across a total rental area of 15,700 square meters, with the majority of the apartments designated as affordable housing. The portfolio is bolstered by construction grants exceeding €10 million and low-interest loans amounting to over €30 million, providing significant financial advantages to the investment.
The Mannheim development, located along the Altrhein river, will feature 60 apartments, while the Nuremberg project will offer 77 residential units in a prime central location. In Fürth, 43 units are being developed. The Mannheim and Fürth properties will adhere to the KfW Efficiency House 55 EE standard, while the Nuremberg development will be built to the higher KfW Efficiency House 40 NH standard, reflecting a commitment to sustainable construction.
Simon Lieb, Managing Director at KINGSTONE Residential Investments, expressed enthusiasm for the new acquisitions: “Our new fund has generated strong interest from institutional investors. Subsidized housing is a particularly appealing segment due to its secure, predictable cash flows and attractive yields. These new developments not only address the urgent demand for affordable housing in Germany but also align with ESG standards, making them highly sustainable investments.”
Ansgar Pape, Managing Director at KINGSTONE Residential Investments, highlighted the financial structuring behind the deal: “We leveraged subsidies and low-interest loans to balance the developer’s requirements with investor return expectations. The long fixed-interest periods on the development loans also protect us from fluctuating debt financing rates.”
Jens Wantia, Managing Director of Ten Brinke Projektentwicklung Deutschland, emphasized the importance of collaboration in delivering affordable housing: “The demand for affordable apartments in Germany’s metro areas is significant. The successful development of subsidized housing depends on strong partnerships between public authorities, funding bodies, investors, and developers.”
The “KINGSTONE Bezahlbares Wohnen Deutschland” fund, advised by KINGSTONE Residential Investments in partnership with Pallino Real Estate, is poised for further growth in the subsidized housing market. Legal and tax due diligence for the acquisition was handled by Heussen Rechtsanwaltsgesellschaft mbH, with Case Real Estate, Arcadis Germany, and iib Consult conducting technical due diligence.
This transaction underscores KINGSTONE’s commitment to expanding its portfolio of affordable, sustainable housing in key urban areas across Germany, meeting both investor demand and pressing social needs.
