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Credit: KGAL GmbH & Co. KG

KGAL buys Perlach Plaza development in Munich from CONCRETE Capital/BHB

New urban district development scheduled for 2022 completion – KGAL Investment Management GmbH & Co. KG has acquired the Perlach Plaza development in Munich for 250 million euros.

The acquisition was made on behalf of a KGAL-managed AIF and is a club deal with three institutional investors. The sellers are the project‘s developers, CONCRETE Capital and BHB Bauträger GmbH Bayern. The 250 million euro development is located on the east side of Munich and comprises around 30,000 sq m of hotel, retail, student living and more than 100 private rental apartments.

André Zücker, Managing Director of KGAL Investment Management with responsibility for real estate, commented: “The location, scale and mix of uses that the development provides make it an ideal acquition for KGAL and our investment partners“.

The mixed-use complex is located directly opposite the established Perlach shopping center, PEP, and also includes 450 parking spaces some which will be equipped with e-charging stations. and car / bike sharing options available. The neighbourhood has become a focus for new residential development and the there are currently around  750 new homes being built in the “Kulturquadrat” area.

Peter Fritsche, Managing Director of CONCRETE Capital commented: “We are delighted to have found the right investor for the project at such an early stage of its creation. The high demand for the commercial space in the development – around 70% is already pre-let – is further endorsement of its quality and appeal to the market“.

KGAL Investment Management sourced equity involvement from three institutional investors for the club deal. Florian Martin, Managing Director of KGAL Investment Management with responsibility for sales, commented: “This transaction further demonstrates our ability to access a wide range of investors and tailor investment oppprtunities which meet their strategic needs“.

The Munich law firm Heuking Kühn Lüer Wojtek acted as legal advisor for KGAL. Taylor Wessing advised CONCRETE/BHB. Colliers International advised on the transaction.