The holding company of a pan-european commercial real estate fund
KGAL Core 4 Holding S.à r.l. is a wholly owned subsidiary of KGAL Core 4 Real Estate SICAV SIF S.C.S. (“KGAL Core 4”), a specialized investment vehicle, exclusively focused on the European commercial real estate market with an investment focus mainly on office buildings. KGAL Core 4 is categorised as an Article 8 product for the purposes of Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (“SFDR”) and takes into account both, environmental and social characteristics during the acquisition process of buildings and strives to improve assets continuously over the years. It follows a holistic ESG strategy, with strict exclusion criteria and a clear process to identify areas of improvement. All investments shall be made through KGAL Core 4 Holding S.à r.l.
Investment strategy
The overall investment objective of KGAL Core 4 is to achieve regular income and capital appreciation for investors through a balanced and diversified pan-European portfolio of real estate investments. Key for the choice of investments is a central city location. The related value component of the rarely replicable ground of each investment contributes stability and sustainability for the overall value of KGAL Core 4 Holding S.à r.l and ultimately of KGAL Core 4. Each time, an investment is made, due diligence is performed as part of pre-investment fundamental analysis which takes the requirements of the SFDR into consideration. As investments have been made and are planned to be made exclusively in Europe, high standards of good governance and labour relations in these countries are respected.
Portfolio
KGAL Core 4 comprises a commercial real estate portfolio, with focus on office buildings that invest in both projects and existing properties in different countries in Europe. Besides the main portion in office use, KGAL Core 4 may also invest in retail, residential, hotel, parking spaces etc. as minority quota. By using different routes to market (e.g. different countries and 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 4 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 properties within the scope of the investment strategy described above in different countries across Europe. The sole shareholder is KGAL Core 4 Real Estate SICAV-SIF S.C.S., a Luxembourg based reserved alternative investment fund exclusively open to professional investors. KGAL Core 4 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.
