KGAL Core 5 expands its pan-European residential portfolio with acquisition in The Hague

KGAL has acquired a fully rented residential property with around 3,000 square metres located in The Hague, Netherlands, which was completed in 2024 for its pan-European residential real estate fund KGAL Core 5. The modern property consists of 36 high-quality rental apartments in the free rental segment and meets the highest sustainability and efficiency standards.

“Despite a challenging market environment, we were able to acquire a fully let core property without any development or letting risks,’ commented Rainer Pohl, Head of Transaction Management at KGAL. "Against the backdrop of structurally limited new construction activity in many European metropolitan regions, stable excess demand and attractive gross initial yields, we continue to see good investment opportunities in the residential segment, which is in demand from investors. Further selective investments are therefore planned for Core 5. Specifically, we are looking for younger portfolio properties with high ESG performance in liquid, high-growth markets to further optimise performance and diversify risk."

Following the acquisitions in Ireland and Spain, this property represents the third investment for the fund.  With the acquisition in the Netherlands, the invested equity exceeds the threshold of EUR 100 million - another milestone in the fund's strategic orientation. All fund properties are 100 per cent sustainable in accordance with Article 9 SFDR. Thanks also to the very good occupancy rate of around 97 per cent, the fund return is currently in the high single-digit percentage range with a 100 per cent equity investment.

“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,’ says 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.”

The 36 residential units have an average size of 83 square metres and are efficiently designed - a residential offer that is in particularly high demand on the tight rental housing market in The Hague. The property also includes 29 car parking spaces.

Dirkzwager was responsible for the legal and tax due diligence, while the Dutch branch of DW Real Estate was responsible for the commercial due diligence, SGS for the technical analysis and Oterea for the ESG due diligence.

Please cite KGAL as the source when using the image.