KGAL Core 5 acquires residential property in The Hague as part of Pan-European expansion

KGAL Core 5 Acquires Residential Property in The Hague as Part of Pan-European Expansion

Grünwald, 20 May 2025 – KGAL has added a fully leased residential property in The Hague to its pan-European real estate fund, KGAL Core 5. The building, completed in 2024, comprises 36 apartments with a total area of around 3,000 square metres. The asset meets advanced energy efficiency and sustainability standards and is located in a competitive rental housing market.

This acquisition follows earlier investments by KGAL Core 5 in Ireland and Spain and brings the fund’s total invested equity above €100 million. All properties in the fund meet the criteria of Article 9 of the EU Sustainable Finance Disclosure Regulation (SFDR), reflecting a focus on sustainability. The fund currently reports an occupancy rate of approximately 97% and achieves returns in the high single-digit range based on full equity investment.

The residential units in The Hague have an average size of 83 square metres and are designed to meet the demand for modern, efficiently planned housing. The property also includes 29 parking spaces.

Rainer Pohl, Head of Transaction Management at KGAL, stated that despite ongoing market challenges, the acquisition presented an opportunity to secure a core asset with no development or leasing risks. He noted that constrained new supply in many European cities continues to support long-term demand in the residential sector. Further acquisitions are planned, with a focus on newer, ESG-compliant properties in liquid and high-growth urban markets.

Philipp Langbehn, portfolio manager of KGAL Core 5, added that the new acquisition aligns with the fund’s strategy of geographic diversification and long-term value creation in demographically and economically stable locations.

Legal and tax due diligence was carried out by Dirkzwager. DW Real Estate (Netherlands) handled commercial due diligence, SGS was responsible for technical analysis, and Oterea conducted the ESG review.