Credit: KGAL GmbH & Co. KG
Credit: KGAL GmbH & Co. KG

KGAL’S NEIGHBORHOOD QUARTER “PERLACH PLAZA” IN MUNICH, GERMANY, GETS OFF TO A FLYING START

In August 2020, KGAL Investment Management acquired “Perlach Plaza” as a forward deal from project developers CONCRETE and BHB Bauträger GmbH Bayern, for a total investment cost of around 250 million euros on behalf of three institutional investors.

After the handover of the completed property in the east of Munich, the 111 flats and 104 student apartments are already fully let. In addition, 98 percent of the mixed-use, commercial space is occupied with a total floor space of around 50,000 sq m. As a specialist in mixed-use neighborhoods, KGAL intends to realize further projects in the future in the spirit of the “15-minute city”.

In addition to living space, Perlach Plaza offers a 5,000 sq m park, a weekly market, shopping, supermarkets, gastronomy, a 172-room hotel, a fitness studio, hundreds of bicycle parking spaces, a multi-story car park with 45 e-charging points and direct access to an underground station. As a green building, the new mixed-use complex also meets high ESG requirements.

Advantages of the mixed-use quarter

“Perlach Plaza has been very well received, and the path to a lively district center has been mapped out,” explains André Zücker, Managing Director of KGAL Investment Management. “When CONCRETE offered us exclusively the purchase of the property in the summer of 2020, we were not put off by the dreary history of Hans-Seidel-Platz. We could see the long-term potential of the location, as we have been successfully investing in mixed-use quarters since 2010 and are focused on the topic.”

“Another important criterion for such large-scale projects is reliable project developers,” adds Zücker. “CONCRETE and BHB delivered on time and to a high spec, despite the massive challenges presented by Corona, supply chain problems, and rising construction costs”.

CONCRETE specializes in Munich and southern Germany, focusing on crisis-proof residential and commercial properties in economically strong locations.

Complex structures need experienced asset managers

The right buyers with a long-term perspective are also important for the success of mixed-use quarters. “Perlach Plaza” combines residential, retail, and hotel.

“This mix is highly attractive, but not every investor can manage such a complex structure,” emphasizes Peter Fritsche, Managing Director of CONCRETE. “That’s why KGAL, with its in-house, broad-based asset management expertise, is the ideal partner for us”.

Going forward, KGAL intends to press its advantage in asset management in mixed-use neighborhoods. Florian Martin, Managing Director of KGAL Investment Management has said: “We are convinced of the concept of the ‘15-minute city’. And we have already proven, time and again, that we bring together promising projects, the right investors, and our expertise to deliver long-term success in mixed-use projects.”

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