KGAL GmbH & Co. KG

2017 Real Estate Top 100 ranking: 88http://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 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.

  • KGAL buys Westfalen shopping centre download

    Independent investment and asset manager KGAL is further expanding its portfolio of special real estate AIF, with a high-footfall and established specialist retail centre. The Westfalen Einkaufszentrum (WEZ) is located in the north of Dortmund city centre.

  • KGAL buys Mühldorf retail park annex building in Austria download

    KGAL Group is expanding its real estate portfolio in Austria with the acquisition of a contemporary annex building to Mühldorf retail park in Feldbach, Styria. The property will become part of an open-ended special property fund focused on Austria, which is administered by HANSAINVEST Hanseatische Investment GmbH as a regulated capital management company for services (Service KVG).

  • KGAL “hanseWasser” real estate in Bremen honoured with DGNB Platinum certificate download

    Grünwald, 19.12.2018 – The property in the Überseestadt district of Bremen, has been honoured with a Platinum certificate from the German Sustainable Building Council (DGNB) in recognition of the contemporary and sustainable quality of the build. The property is looked after and managed by KGAL Investment Management and is part of one of the largest urban development projects in Europe. The building is the headquarters of the sewerage company hanseWasser Bremen GmbH.

  • KGAL acquires an office asset in Fellbach download

    With the acquisition of a multi-tenant office property in Fellbach near Stuttgart, independent investment and asset manager KGAL is adding another commercial property with long-term lets to its internationally oriented special real estate AIF.

View more News from KGAL GmbH & Co. KG

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
Company website:
http://www.kgal-group.com
Year Founded:
1968

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What’s new

  • KGAL ESPF 4: 500 million € investment volume

    KGAL ESPF 4: 500 million € investment volume

    Asset Manager NewsThu, 14 Feb 2019

    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.

  • kgal dortmund westfalen einkaufszentrum

    KGAL buys Westfalen shopping centre

    Asset Manager NewsMon, 4 Feb 2019

    Independent investment and asset manager KGAL is further expanding its portfolio of special real estate AIF, with a high-footfall and established specialist retail centre. The Westfalen Einkaufszentrum (WEZ) is located in the north of Dortmund city centre.

  • kgal fachmarktzentrum muehldorf oesterreich 20190109

    KGAL buys Mühldorf retail park annex building in Austria

    Asset Manager NewsWed, 9 Jan 2019

    KGAL Group is expanding its real estate portfolio in Austria with the acquisition of a contemporary annex building to Mühldorf retail park in Feldbach, Styria. The property will become part of an open-ended special property fund focused on Austria, which is administered by HANSAINVEST Hanseatische Investment GmbH as a regulated capital management company for services (Service KVG).

  • KGAL “hanseWasser” real estate in Bremen honoured with DGNB Platinum certificate

    Asset Manager NewsWed, 19 Dec 2018

    Grünwald, 19.12.2018 – The property in the Überseestadt district of Bremen, has been honoured with a Platinum certificate from the German Sustainable Building Council (DGNB) in recognition of the contemporary and sustainable quality of the build. The property is looked after and managed by KGAL Investment Management and is part of one of the largest urban development projects in Europe. The building is the headquarters of the sewerage company hanseWasser Bremen GmbH.

  • kgal acquires the seerhein center in constance

    KGAL acquires an office asset in Fellbach

    Asset Manager NewsTue, 4 Dec 2018

    With the acquisition of a multi-tenant office property in Fellbach near Stuttgart, independent investment and asset manager KGAL is adding another commercial property with long-term lets to its internationally oriented special real estate AIF.

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