KGAL GmbH & Co. KG Thursday, 27.01.2022
Grünwald – KGAL Investment Management GmbH & Co. KG has acquired what is now the fifth property for its KGAL Wohnen Core 3 fund. The architecturally exceptional ‘KönigsTOR’ neighbourhood development will form the new centre of the Regensburg Königswiesen district. The up to 12-storey building consists of 392 modern flats and six commercial units with a focus on local amenities. The property is scheduled for completion by mid-2023.
Regensburg has an exceptionally high job density and generates a correspondingly strong GDP. Another special feature: according to surveys, Regensburg has been the German city with the highest proportion of single-person households for years (more than 57 per cent in 2020). This applies not least to the Königswiesen district, which is close to the university. ‘The new, high-quality KönigsTOR district centre offers three- and four-room flats as well as modern one- and two-room flats. It therefore meets the demand on Regensburg’s residential rental market exactly,’ explains André Zücker, Managing Director of KGAL Investment Management and responsible for the Real Estate division. ‘Another plus point for prospective tenants is the sustainable energy concept with its below-average heating costs.’ Heat pumps, which utilise geothermal energy as a source, cover a good two thirds of the heating energy requirement, while a combined heat and power plant covers almost all of the rest.
The ‘KönigsTOR’ residential neighbourhood is divided into six connected buildings. The 392 new-build flats with a total rental area of 19,442 square metres consist of 337 privately financed and 55 subsidised units. Of the six commercial units in the basement with a total area of 6,431 square metres, three are let on long-term leases to Sparkasse Regensburg, the full-range retailer Rewe and the discount grocery store Netto. They should be ready for occupancy as early as 2022. The underground car park beneath the neighbourhood centre offers 640 parking spaces and there are also various bicycle parking spaces available. A spacious neighbourhood square and a children’s playground will be created in the outdoor areas. The ‘KönigsTOR’ thus fulfils the expectations of a contemporary concept for living in one’s own neighbourhood.
Broadly diversified fund portfolio
‘Eight months after the first closing of KGAL Wohnen Core 3, we have already allocated more than 70 per cent of the equity of 500 million euros,’ comments Florian Martin, Managing Director responsible for institutional clients at KGAL Investment Management. ‘We also achieve excellent regional diversification with the five properties in the portfolio: with KGAL Wohnen Core 3, we are represented in the west, east, north and south of Germany.’
KGAL Wohnen Core 3 uses a pronounced ESG approach to invest in residential properties with a sustainable building fabric in Germany’s growing residential markets. The fund is characterised by a clear investment and allocation strategy as well as the rapid implementation of the deal pipeline.