Both properties have been leased on a long-term basis to food retail tenants with good credit ratings, and are in strategic locations with good customer potential. The transfer of ownership took place on 01/03/2019.
Metzingen and Wannweil are located in the economically strong Stuttgart metropolitan area in the German state of Baden-Württemberg. Both locations are characterised by positive population development and above-average purchasing power.
“The KGAL immoSUBSTANZ fund is off the ground, with two properties that perfectly reflect its investment strategy, as properties that are leased on a long-term basis, in locations with potential,” explains André Zücker, a member of the Management Board of KGAL Investment Management GmbH & Co. KG, who is responsible for the Real Estate asset class. “We believe that the German property market is very robust overall and offers high value retention in volatile times.” REWE is the main tenant of the food market in Metzingen, which was completed in 2012, while EDEKA is the sole tenant of the food market in Wannweil.
Contextual information: KGAL immoSUBSTANZ is an open-ended mutual real estate fund that invests in Germany, and in other selected cities in the European Economic Area. The fund is aimed at private investors who want to build assets over the long term and with a stable yield.