KGAL GmbH & Co. KG

2018 Real Estate Top 100 ranking: 97http://www.kgal-group.com

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Manager Details

KGAL

As a leading Investment and Asset Manager, based in Germany, KGAL has 50 years of experience in structuring long-term real capital investments for its Clients which have sustainable and stable yield profiles. KGAL offers a full service investment management platform for its institutional investors across its key markets and sectors. As of 31 December 2017, KGAL managed an investment volume of around EUR 22.7 billion in all asset holding and investment entities.

KGAL draws on its proven track record and in-house experience to provide investment opportunities across its three real asset classes – real estate, aviation and infrastructure. Our specialist teams service offering, ensures that not only do we assess the potential for asset growth and accompany risks, they also proactive monitor the asset investments from start to finish, including acquisition, operational management to the ultimate sale.

Placing our customers first, we strive to become the real asset manager of choice for institutional investors.

Sector forecasts

Office: KGAL concentrates on core office markets in Germany and Austria, the so-called Big 7 (Berlin, Cologne, Duesseldorf, Frankfurt, Hamburg, Munich, Stuttgart) as well as Vienna. With market fundamentals improving, KGAL is seeing stable or growing demand and tightening pipelines for office space in core areas. Although regions are developing at different paces, KGAL believes that in most markets assets can be priced with a favourable outlook. In many areas of the market KGAL is expecting stable or falling yields and cap rates.

The positive real economic outlook for large parts of Europe and Germany’s particular appeal to investors should keep the office real estate market strong. This is grounds for optimism, as well as some concern. One concern is that the growing scarcity of core office real estate with first-class quality standards could slow the current investment trend while keeping prices artificially high. This would put the squeeze on investment returns, particularly in the Big 7 cities. Investors would then have to invest in office real estate in B-rated locations or cities to maintain their portfolio returns.

Residential: With its secure cash-flows, low volatility and stable returns, the German residential market has been discovered as an attractive asset class, especially for institutional investors. Based on the volume of current enquiries, KGAL expects demand for this product to continue to develop positively. The German residential market will remain on a high. Even disruptive factors like the wrangling over a cap on rents or massive increases in property transfer tax rates in some federal states have not yet had a decisive impact on the positive mood.

Retail: KGAL will be expanding its retail portfolio considerably in the future. In global terms, the most attractive market for retailers is in Germany. Institutional and international investors are desperately looking for suitable investment opportunities here. Foreign investors in particular dominated the German market in the first half of the year. On the purchaser side, their share of individual and large portfolio transactions accounted for 50% of the total investment volume. They also took advantage of the German market’s strong appeal in terms of sales. Their share of divestments across Germany stands at around 70%. KGAL focuses on retail parks with planning restrictions for similar developments and mixed-use buildings with a high level of footfall.

Investment principles & strategy

KGAL invests in core, core plus and value added office and retail properties in Germany and Austria. It focuses on certified buildings with high operational energy efficiency. Asset management is provided by in-house experts and a network of third parties.

News from KGAL GmbH & Co. KG

  • KGAL New Frontiers invests in SunErgy - Solar power plants in Africa promote economic development

    KGAL New Frontiers GmbH (KNF) has acquired a 22% share of SunErgy AS, a Norwegian company delivering innovative solar power infrastructure in emerging markets. This investment aims to test new business fields.

  • KGAL Group expands international presence download

    KGAL GmbH & Co. KG had a successful jubilee year in 2018, with achieving new business volume of around €1.9 billion, and managing an investment volume of €20.5 billion. In the 2019 financial year, KGAL Group plans to further expand its presence outside Germany.

  • New funds for private and institutional investors download

    KGAL Real Estate invests in Ireland, Poland and the Netherlands for the first time 

  • Aircraft funds are ESG-compliant download

    The recently published “Perspective: Aviation Markets” explores the topics of sustainability in the aviation industry, technical acceptance of a new aircraft, and the fascination of flying. Investment and asset manager KGAL reports on current developments as well as supplying background information.

  • KGAL ESPF 4: 500 million € investment volume download

    The KGAL ESPF 4 renewable energy fund has already committed a total investment volume of around 500 million euros to construction or portfolio projects, including wind power and photovoltaics projects in four European countries. The fund pursues a core plus strategy, with a total planned investment volume in excess of one billion euros.

View more News from KGAL GmbH & Co. KG

News from IPE Real Assets

View more News from IPE Real Assets

White Papers / Research from KGAL GmbH & Co. KG

View more White Papers / Research from KGAL GmbH & Co. KG

Analysis from IPE Real Assets

  • Aviation: Clear runway

    After a series of new fund launches, aircraft leasing is clearly attracting a growing number of investors. Jennifer Bollen checks in to the asset class

  • 10 years after Lehman: German real estate funds

    Not long after the global financial crisis, Germany’s open-ended property funds experienced their own existential threat. But the industry ultimately survived, writes Steffen Sebastian

  • Expo Real: Low yields push investors towards alternatives

    Increased competition and yield compression in major office, retail and logistics markets are bringing other sectors – and more peripheral geographies – into the limelight.

Head Office
Tölzer Str. 15
Grünwald
82031
Germany
Contact
Florian Martin Tel. +49 89 64143 166
Company website:
http://www.kgal-group.com
Year Founded:
1968

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What’s new

  • KGAL New Frontiers invests in SunErgy

    KGAL New Frontiers invests in SunErgy - Solar power plants in Africa promote economic development

    Asset Manager NewsWed, 10 Apr 2019

    KGAL New Frontiers GmbH (KNF) has acquired a 22% share of SunErgy AS, a Norwegian company delivering innovative solar power infrastructure in emerging markets. This investment aims to test new business fields.

  • KGAL Group expands international presence

    Asset Manager NewsThu, 7 Mar 2019

    KGAL GmbH & Co. KG had a successful jubilee year in 2018, with achieving new business volume of around €1.9 billion, and managing an investment volume of €20.5 billion. In the 2019 financial year, KGAL Group plans to further expand its presence outside Germany.

  • New funds for private and institutional investors

    New funds for private and institutional investors

    Asset Manager NewsThu, 7 Mar 2019

    KGAL Real Estate invests in Ireland, Poland and the Netherlands for the first time 

  • why germany appeals to late cycle real estate investors

    Why Germany appeals to late-cycle Real Estate Investors

    White papersTue, 5 Mar 2019

    In the annual survey of INREV members, Germany emerged as their primary investment target for 2019. Christine Fritz of KGAL looks at what it is about the German economy and its real estate market that makes it so attractive.

  • Aircraft funds are ESG-compliant

    Asset Manager NewsTue, 19 Feb 2019

    The recently published “Perspective: Aviation Markets” explores the topics of sustainability in the aviation industry, technical acceptance of a new aircraft, and the fascination of flying. Investment and asset manager KGAL reports on current developments as well as supplying background information.

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