The Holding Company of a pan-European residential fund
KGAL CORE 5 Holding S.à r.l. is a wholly owned subsidiary of KGAL CORE 5 SICAV-RAIF S.C.S. (“KGAL CORE 5”), a specialized investment vehicle, exclusively focused on the European residential real estate market. KGAL CORE 5’s classification as an impact fund under Art. 9 of the SFDR is the logical consequence of its focused ESG investment policy. The Pan-European Residential fund will generate positive, measurable social and environmental impacts by investing in selected European Metropolitan Areas with a significant demand for sustainable green and/or affordable housing. All investments shall be made through KGAL CORE 5 Holding S.à r.l.
Investment strategy
Stable and secure housing is the primary platform for people to connect to economic and social life as well as for their health and well-being. This basic need is irreplaceable and currently challenged by the prevailing economic and ecological environment.
The European residential market in these days is characterized by an imbalance between supply and demand mainly fueled by household-growth, urbanization and population-growth. As a result, affordability of rents and living is becoming a major problem especially for the young generation and the low-to middle-income population.
Another major problem is the threat that climate change poses on human society, ecosystems and economy. One of the biggest contributors to global warming responsible for approx. 40% of all global carbon emissions is the real estate and construction industry.
KGAL CORE 5 is addressing these problems with a clearly defined investment strategy targeting the following:
- Alignment with the 1.5 degrees target of the Intergovernmental Panel on Climate Change (IPCC) and therefore aiming for net zero Co2 Emissions by 2050
- Focus on energy-efficient buildings and cutting Co2 emissions by obtaining energy from renewable energy sources
- Using limited resources in a sustainable manner while minimizing impacts on the environment by e.g. using water saving fitting, installation of smart meters, use of energy-saving lights etc.
- Implementing sustainability strategies and thus conclusion of green leases and setting-up communication platforms in order to engaging the tenants, service providers etc. in the battle against climate change
- Creating affordable housing for the low- to middle-income population and enhancing user comfort and well-being of the tenants
KGAL CORE 5 Holding S.à r.l. is committed to creating a portfolio with a minimum of 90% of sustainable investments. A minimum of 15% thereof shall be EU-Taxonomy aligned investments. The ESG-approach is deeply incorporated in the real estate management strategies throughout the life cycle of the properties. Alongside the ecological and social benefits KGAL CORE 5 Holding S.à r.l. seeks to create sustainable and secure returns with a long term perspective.
Portfolio
The dedicated ESG strategy of KGAL CORE 5 will be a cornerstone and a stabilizing factor to the fund’s performance.
Consequently, KGAL CORE 5 will invest in both residential projects and existing residential properties in different countries in Europe, with a focus on creating an immediate environmental and/or social impact or achieving this impact in the transition phase.
By using different routes to market (e.g. different investment locations, assets in different life stages etc.), the portfolio will be diversified to create stability. Together with the active asset management approach, this enables value creation.
Structure
KGAL CORE 5 Holding S.à r.l. is a limited liability company (société à responsabilité limitée) under the laws of the Grand Duchy of Luxembourg, headquartered in Luxembourg. Its objective is to acquire, hold and finance stakes in companies that own or intend to acquire properties within the scope of the investment strategy described above in different countries across Europe. The sole shareholder is KGAL CORE 5 SICAV-RAIF S.C.S., a Luxembourg based reserved alternative investment fund exclusively open to professional investors. KGAL CORE 5 Holding S.à r.l. also provides central services to its subsidiaries such as implementing the investment strategy, financing activities, procurement services including debt arrangements, or supporting the divestment process during the fund’s duration.
Information
For further information please contact: info@kgal-core5-holding.lu
