KINGSTONE Real Estate (KINGSTONE RE) just acquired a mixed residential/retail building in the town of Weil am Rhein from BPD (Bouwfonds Immobilienentwicklung). The development consists of 48 publicly subsidised rental apartments plus c. 1,100m2 in retail area. The transaction took the form of a forward deal and comprises a plot of land of around 3,290m2 and the building’s turn-key construction.
Construction work will start before the end of the first quarter of 2025, with the completion scheduled for year-end 2026. HANSAINVEST Hanseatische Investment GmbH serves as the fund’s third-party AIFM. The parties agreed not to disclose the selling price. Blue Tree Real Estate acted asthe estate agent. Heussen Rechtsanwaltsgesellschaft mbH was responsible for the legal and tax due diligence. Case Real Estate, Arcadis Germany and iib Consult were involved in the due diligence. BPD was advised by KFR Kirchhoff Franke Riethmüller Partnerschaft von Rechtsanwälten mbB.
The development site is located at the corner of Hauptstrasse and Riedlistrasse. The 48 apartments, which have between two and four rooms and which range from 55m2 to 100m2 in size, are spread across three upper floors and the attic. Moreover, residents will have the use of an underground car park with 39 spots. Another 33 surface parking spots are allocated to the commercial units. The roof will be surfaced with gravel packing and extensive greening to tie down particulates, to harvest rainwater and to facilitate natural climate control with its insulating properties.
Dr. Tim Schomberg, managing partner and co-founder of KINGSTONE RE, commented: “We are pleased to say that we managed to acquire the fourth piece of real estate for our fund within a relatively short period of time. We have been seeing strong demand among institutional investors.”
Tobias Stuber, authorised signatory and head of investor sales & strategic projects at BPD, added: “It fills us with pride that we are able to contribute via this project development to the creation of urgently needed affordable housing within a persistently challenging environment, and are glad to have found a partner in KINGSTONE RE who shares our outlook. At the same time, the sale paves the way for further residential developments close to the Swiss border that we will implement in the years ahead.”
Ansgar Pape, managing director of KINGSTONE Residential Investments, commented: “Investments in subsidised housing offer a very high security of income because demand on the tenant side is sky-high. At the moment, we are checking out a variety of properties, and are confident that we will engage in further acquisitions in the course of this year.”
Simon Lieb, managing director of KINGSTONE Residential Investments, added: “Southern Germany—especially the states of Bavaria and Baden-Württemberg—are currently very attractive for subsidised housing investments because the conditions for public funding are favourable here. The fund already holds two properties in Bavaria and another one in Baden-Württemberg. Accordingly, the asset in Weil am Rhein goes hand-in-glove with our strategy and our existing portfolio.”
The town of Weil am Rhein is located in the South Baden region. Due to its immediate proximity to the Rhine River and to the border crossings with France and Switzerland, it is conveniently connected to the neighbouring two countries. The infrastructure and the central location make the site equally attractive for residents and businesses.
Image Source - KINGSTONE RE.
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