KGAL Real Estate has invested in Ireland, Poland and the Netherlands for the first time with the launch of two funds for private and institutional investors - KGAL Walkability fund and KGAL immoSUBSTANZ open-ended property fund.
In the last business year KGAL completed transactions on 30 properties in total, with a value well in excess of €900m. "We've secured some good transactions in a restricted market," affirms André Zücker, Member of the Management Board of KGAL Investment Management GmbH & Co. KG, who is responsible for the Real Estate asset class. Of these transactions, 18 were purchases, with a total value exceeding €600m.
Six transactions took place outside Germany, with first-time acquisitions in Dublin, Haarlem (near Amsterdam) and Warsaw, while in Germany and Austria, the company extended its market leadership in the retail park sector. Across the entire portfolio, the high tenancy rate rose slightly to 98.4%.
KGAL Walkability fund for institutional investors reflects the megatrend of urbanisation. "Young employees in particular want short travel times between work, home, and leisure," said Zücker. The seed properties in the KGAL Walkability fund have a high Walk Score. This score measures the property's integration into a lively environment that comprises living, working, shopping, restaurants and recreation opportunities.
KGAL immoSUBSTANZ is an open-ended property fund that invests in Germany, as well as selected growth cities elsewhere in the European Economic Area. The fund is aimed at private investors who want to build assets in a sustainable way and with a stable yield. Zücker added: "The German real estate sector has proven stable even in unstable times, and it offers attractive yield opportunities in selected cities."