The Corestate subsidiary HFS has sold a premium new residential construction portfolio with commercial space and a gross lettable area of 22,900 m² in Leipzig, Germany, to KGAL Investment Management GmbH’s KGAL Wohnen Core 3 institutional fund for a nine-digit figure.
Frankfurt/Pfäffikon (CH), 25 January 2022 – The Corestate subsidiary HFS has sold a premium new residential construction portfolio with commercial space and a gross lettable area of 22,900 m² in Leipzig, Germany, to KGAL Investment Management GmbH’s KGAL Wohnen Core 3 institutional fund for a nine-digit figure. On account of its volume, the deal was the largest residential development transaction in Leipzig in 2021. HFS provided early-stage project development financing. In 2016, the project was acquired on behalf of a German superannuation scheme through a special AIF initiated by HFS. From the start of construction, HFS successfully managed and optimised the portfolio for the institutional client while overseeing the final development of the project. The company later positioned the project in the market and rented out all of the residential units in a short space of time.
Thanks to its fully integrated line of services with expertise in financing, project development, asset management and market positioning, HFS has succeeded in making full use of the investment potential and generating a double-digit IRR for our institutional client. The project in Leipzig reflects the Corestate Group’s mission of providing real estate investors on both the debt and equity sides with a full range of solutions that embodies high quality standards.
The portfolio consists of four newly constructed residential properties at attractive locations in Leipzig that feature a total of seven buildings built in line with the latest energy standards. The 227 residential units and 15 commercial units were completed between 2018 and 2020. Two of the four properties are located in the city’s central Zentrum-West and Zentrum-Ost districts, with an additional two in the popular Gohlis neighbourhood.
BNP Paribas Real Estate managed the transaction on behalf of the seller. The law offices of Bornheim advised HFS during the sales process.
About CORESTATE Capital
CORESTATE is an investment manager and co-investor with around € 28 billion in assets under management. The company sees itself as a manager for the entire length of the real estate value chain. Thanks to its fully integrated real estate platform, it is able to offer investors a wide range of services, especially the opportunity to invest in large-scale societal trends such as urbanisation, demographic shifts or sustainability – trends that will continue to have a decisive influence on the living and working environment in the long term. The consistent focus on asset classes that will be successful in the long run constitutes a central cornerstone of the company strategy. At CORESTATE, all concepts are supported with ESG expertise that is unique to the industry. With 830 experts, CORESTATE offers clients and investors a full range of services and consultation from a single source, from project financing and real estate management to sales. CORESTATE is listed on the Frankfurt Stock Exchange and operates as a respected business partner for institutional and semi-institutional investors as well as high-net-worth private investors in 11 countries across Europe, with offices in Frankfurt, Vienna, Zurich, Paris, Madrid and London.
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