"Despite a challenging market environment, we were able to acquire a fully let core property without any development or letting risks," says Rainer Pohl, as KGAL marks its third investment for its pan-European residential fund with a prime Netherlands asset.
The fully leased residential property spans approximately 3,000 m² in The Hague, Netherlands, and was completed in 2024. This modern development features 36 high-quality rental apartments in the free rental segment, meeting premium sustainability and efficiency standards.
This latest acquisition follows previous investments in Ireland and Spain, pushing the invested equity beyond the €100m threshold - a significant milestone in the fund's strategic development. All properties in the portfolio are 100% sustainable in compliance with Article 9 SFDR, contributing to the fund's impressive high single-digit percentage returns with 100% equity investment and approximately 97% occupancy rate.
"With the purchase of this ESG-compliant portfolio property in an economically and demographically dynamic residential market, we are consistently pursuing our pan-European investment and growth strategy," states Philipp Langbehn, portfolio manager of KGAL Core 5. "With its attractive yield profile, the property is an ideal building block for our long-term residential property fund, whose attractiveness is further strengthened by the ongoing geographical diversification and the convincing performance since its launch."
What makes this acquisition particularly interesting for investors is the property's strategic positioning in light of rising interest rates affecting new development costs across Europe. The combination of high sustainability credentials and location in a supply-constrained market offers rare inflation protection while simultaneously satisfying increasing ESG mandates from institutional investors.
The 36 residential units average 83 m² and feature efficient layouts, characteristics in high demand in The Hague's competitive rental market. The property includes 29 car parking spaces. Dirkzwager handled legal and tax due diligence, while the Dutch branch of DW Real Estate managed commercial due diligence, SGS conducted technical analysis, and Oterea performed ESG due diligence.
People mentioned:
- Rainer Pohl - Head of Transaction Management at KGAL
- Philipp Langbehn - Portfolio manager of KGAL Core 5
Companies mentioned:
- KGAL - Independent investment and asset manager with an investment volume of more than €15bn under management
- Dirkzwager - Legal and tax due diligence provider
- DW Real Estate - Commercial due diligence provider (Dutch branch)
- SGS - Technical analysis provider
- Oterea - ESG due diligence provider
Image Source: KGAL
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