KGAL creates almost 20,000 square metres of high-quality living space for Regensburg

by   CIJ News iDesk III
2024-02-07   08:54
/uploads/posts/fa1d5d494fa4f92f916e5454bd98049981e55f22/images/1068652755.jpg

At the turn of 2021/2022, the residential property fund KGAL Wohnen Core 3 acquired the “KönigsTOR” Regensburg neighbourhood development during the construction phase. A decision made with strategic foresight: at the recent handover of the completed property to KGAL, 96 percent of the 392 modern flats had already been let well ahead of schedule – including 55 subsidised and 146 barrier-free units. The high-quality building complex offers new homes with many amenities for more than 800 people.

Architecturally striking, the “KönigsTOR” residential quarter combines urban living, shopping and leisure facilities in the heart of Regensburg-Königswiesen. In addition to 19,442 square metres of living space, the ground floor offers 6,431 square metres for commercial use, including grocery shops, a bakery, a savings bank and a restaurant. Tenants have access to an underground car park, various bike racks and a free fitness studio. A spacious neighbourhood square with a children’s playground also adjoins the development. With these features, “KönigsTOR” has already become a lively neighbourhood centre.

“The property is a real showcase of KGAL Wohnen Core 3,” explains Michael Ebner, the Managing Director of KGAL Investment Management and responsible for the portfolio management at KGAL Group. “In turn, ‘KönigsTOR’ offers Regensburg residents urgently needed residential space and a good quality of life at affordable prices.” All tenants benefit from low ancillary costs thanks to the sustainable energy concept, with heat pumps and a combined heat and power plant. The neighbourhood centre therefore meets high ecological as well as social standards.

Market environment slowly brightens
“KönigsTOR” completed the fully invested KGAL Wohnen Core 3 fund, but since 2023, KGAL has been seizing opportunities in the residential real estate market for the new KGAL Core 5 LIFE impact fund – even in the current challenging conditions. André Zücker, the Co-CEO of KGAL and responsible for transaction management notes: “Having secured a very successful initial investment in Spain for KGAL Core 5 LIFE last year, we are planning our second acquisition shortly, with every reason for optimism.”

As inflation and interest rates gradually fall, KGAL expects the transaction market to pick up over the course of the year. “We anticipate a growing selection of residential projects offering competitive yields,” says André Zücker. “This should also lead to a return of investor interest and the creation of more residential housing.”

Photo: KGAL GmbH & Co. KG.