KINGSTONE Real Estate has acquired an office property in Karlsruhe from a project company of GIEAG Immobilien AG as part of an asset deal for the special real estate fund “KINGSTONE Wachstumsregionen Süddeutschland” (KWS). The property at Philipp-Reis-Strasse 4 is leased on a long-term basis to the Federal Agency for Real Estate Tasks (BIMA) and is used by the main customs office of the city of Karlsruhe. The purchase price is in the mid double-digit million range.
The single-tenant property with six upper floors was built in 1978 and extensively refurbished in 2020. The building comprises a lettable area of around 9,400 m². In addition, the 3,700 m² property includes 43 outdoor and 20 garage parking spaces for cars. The current lease for the property has a remaining term of 14 years plus an option to extend. Thanks to its location in Karlsruhe’s Südstadt district, the property is very well connected in terms of infrastructure. In the direct vicinity there are, among other things, restaurants, green areas and the “Philipp-Reis-Straße” S-Bahn station.
“With this transaction, we are optimizing the risk profile of KWS,” explains Dr. Tim Schomberg, Managing Partner and CEO of KINGSTONE Real Estate. “The contract with a state-owned tenant generates reliable income for our investors. The very good building fabric also underlines the long-term nature of the investment.”
Philip Greilich, Head of Transactions Commercial Germany at KINGSTONE Investment Management, adds: “With this transaction, we are securing a high-quality property in a central location in Karlsruhe for our investors. In addition to the excellent transport connections, the tenant also benefits from the direct proximity to generous green spaces. The refurbishment of the property and also the surrounding development activity will also extend the modern cityscape around Citypark towards the city centre.”
The KWS special fund invests primarily in core office properties and commercial real estate in selected growth regions in southern Germany and is aimed at institutional investors. The special AIF launched in the summer of 2019 is already largely fully invested.
„After the sale of Stuttgart’s MAYOFFICE in the summer of 2021, the renewed transaction with KINGSTONE Real Estate within a few months confirms the constructive and good cooperation and further confirms the mutual desire for a long-term partnership,” says Thomas Männel, CEO of GIEAG Immobilien AG.“
KINGSTONE Real Estate was advised on the transaction by Pinsent Masons (legal and tax due diligence) and Drees & Sommer (technical due diligence). For GIEAG Immobilien AG were Waigel Rechtsanwälte Partnergesellschaft mbB as legal advisor and Deloitte GmbH Wirtschaftsprüfungsgesellschaft as tax advisory acted as tax advisors.
About KINGSTONE Real Estate
KINGSTONE Real Estate is an owner-managed real estate investment management group founded by the Schomberg family and Pegasus Capital Partners (Pegasus), whichoffers a broad range of investment products and a holistic investment approach for institutional domestic and foreign capital.
KINGSTONE combines a first-class real estate pipeline with the outstanding national and international capital and partner network of our senior management. We put the proven track record of strategic co-shareholder Pegasus as a project developer and mezzanine specialist coupled with the decades of experience of the Schomberg family in the institutional real estate fund business as well as the expertise of the entire management team and all employees at the service of our investors. The Group has approximately EUR 1 billion in assets under management and employs more than 60 people.
In cooperation with Pegasus, KINGSTONE’s business segment covers the entire value chain of investment management and includes real estate project development as well as mezzanine financing, transaction, asset and portfolio management. We invest for our clients in individual properties, portfolios and project developments.
The result is a holistic investment management platform that offers our investors a one-stop-shop solution for their real estate investments.
GIEAG is a family-run Munich real estate stock corporation. The shares of GIEAG Immobilien AG are traded on the Munich Stock Exchange as well as the Frankfurt Stock Exchange and Xetra. By combining the three asset classes - office, residential, logistics - and the two service areas of development and portfolio management, the company offers stability that is unique in the market. The GIEAG team of experts is a guarantor for innovative and forward-looking concepts.
Over the past 22 years, GIEAG Immobilien AG has developed and optimised a large number of real estate projects with areas of up to 145,000 square metres and an individual investment sum of 15 to 150 million euros. Partnership, transaction security, perseverance and speed are the basis of sustainable value development for GIEAG.