KGAL is a leading independent investment and asset manager with assets under management of around €11.2 billion and assets under administration of €4.0 billion. The firm’s focus is on long-term real asset investments for institutional and private investors in real estate, infrastructure and aircraft. The group, which operates throughout Europe, was founded more than 50 years ago and is headquartered in Grünwald near Munich. 345 employees contribute to achieving sustainably stable earnings, taking into account return and risk aspects (as of 31 December 2020).

In addition to its headquarters in Grünwald (near Munich), KGAL maintains local teams in its offices in Frankfurt, Vienna, Ljubljana and London. 

Sector forecasts

INDUSTRIAL: Logistics real estate seems to be a winner of the COVID crisis, fed by accelerated growth of online trade, although a significant increase in the share of short (one- to two-year) leases in certain markets suggests a wait and see attitude among tenants. Location and asset selection remain essential. Logistics companies that depend on world trade are facing a challenging environment, as they navigate COVID restrictions and strong geopolitical headwinds. The market will continue to evolve, opening up further opportuni-ties for investors.

OFFICE: While recent months have shown that working from home has functioned well for many sectors of the economy, and it is conceivable that office use will decline, the past few months are not a blueprint for the future. Images of certain financial districts during COVID peaks, for example, do not reflect the reality in the majority of offices in Germany and other continental markets, where the majority of employees have returned to regular use of the office. As soon as the COVID situation reaches a new normal (perhaps as early as 2021), the view on the future path of the office will become more clear.

KGAL believes that in the future, an attractive office property will have the usual modern features occupiers have come to expect – and allow for changed health and distancing best practices. In terms of how offices are used, we expect existing trends to continue, particularly the transformation of the office from generic ‘nine to five’ locations to hubs for communication, interaction and concentrated work.

RESIDENTIAL: With its secure cash flows, low volatility and stable returns, the German residential market has established itself as an attractive asset class, especially for institutional investors. Based on the volume and profile of investor interest, KGAL expects demand for exposure to this sector to continue to develop positively. The German residential market will remain on a strong path, driven by the continuing undersupply of residential space in many markets.

RETAIL: The measures to contain the Corona pandemic and the resulting closure of retail stores have significantly accelerated the shift from physical to online trading. Instead of the expected slow decline, retail has reached a point that was not expected for another five years. It is still early to predict which concepts will regain momentum in the near future, apart from food and other necessity retail.

The retail sector is heterogeneous and so are the properties: while smaller and decentralised shopping centres, for example, require caution, retail parks with the right tenant mix have demonstrated resilience. But even challenged, smaller shopping centres could be interesting for investors with regard to a possible third party use (medical centre, last mile logistics) or the addition of residential space.

Investment principles & strategy

In KGAL’s real estate investments, location quality and sustainability are top priorities, consistent with our focus on being a reliable, long-term partner for our clients. KGAL has been at home in the three major asset classes of office, retail and residential for decades. In addition, we see up-and-coming alternatives such as inner-city district developments, and mixed-use properties with healthcare, education and student housing as investments with a promising future. As the foundation of our investment activity, we analyse long-term trends in the areas of work, traffic and consumption and their effects on the built environment.

Strategic corporate development

KGAL’s strategy for the coming years envisages a further expansion of vertical value creation, including project developments, as well as the further strengthening of our Europe-wide activities.

In addition to focused portfolio and asset management, we aim to provide a full range of real estate services to the properties we manage on behalf our clients. Consequently, in addition to our real estate investment specialists, we will continue to leverage our own research, engineers and architects in the acquisition and operation of assets.

The KGAL real estate team is already active in nine European countries. We continue to emphasise the importance for each country team to comprise the necessary skills, country-specific experience and knowledge as the share of international investments grows in the coming years.


The stated information is for general infor- mation purposes only. The information is provided by KGAL (“KGAL, KGAL Investment Management or KGAL Group”) and while KGAL endeavours to keep the information up to date and correct, KGAL makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, sustainability and availa- bility with respect to the presentation or the information, products, services, or related graphics etc. contained in the presentation for any purpose.