Kingstone Real Estate has completed the fundraising for its open-ended institutional real estate fund, Kingstone Bezahlbares Wohnen Deutschland I, securing €150 million in equity from a single institutional investor.
Structured as a separate account mandate, the fund will target affordable housing developments across Germany.
With a planned leverage ratio of 50%, the fund’s total investment capacity will reach approximately €300 million. Hansainvest Hanseatische Investment Gesellschaft is acting as the fund’s third-party AIFM. Kingstone Real Estate confirmed that preparations for a successor fund in the affordable housing segment are already underway.
Dr. Tim Schomberg, CEO and co-founder of Kingstone Real Estate, described the commitment as “a strong sign of confidence” from the investor, adding that the follow-up fund will place greater emphasis on affordable and subsidised housing in Germany.
Roughly one third of the fund’s investment capacity has already been committed to projects in Mannheim, Nuremberg, Fürth and Weil am Rhein, expected to deliver more than 200 affordable apartments in sought-after urban locations.
Ansgar Pape, managing director of Kingstone Residential Investments, said the team is progressing with exclusive due diligence and pre-acquisition reviews for further opportunities. “Considering the reassuring pace of our progress, we are convinced that we will manage to place the remaining investment capital of our first fund in full and for this specific purpose in the foreseeable future,” he noted.
Looking ahead, Kingstone Real Estate is preparing a successor vehicle with an expanded investment scope. According to managing director Simon Lieb, the new strategy will include affordable housing for families, seniors, singles, as well as students and apprentices under Germany’s recently introduced “Young Living” funding programme. “Doing so will help us broaden the effective scope of our approach and will contribute more specifically to the creation of just the right housing options for the various stages of life,” Lieb said.
