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The KGAL Group achieved a record financial year for real estate in 2017. Transaction volumes once again exceeded the billion-euro mark – decisively so, at over €1.5 billion – and new leases entered a new dimension, with over 106,800 m² closed.
“In a challenging market environment and amid fierce competition, our real estate
business performance was once again top class. Together with our investors, we
continued to implement successful international real estate strategies,”
commented André Zücker, Managing Director for Real Estate at KGAL.
2017 also saw the independent investment and asset manager keep pace with
extremely dynamic commercial real estate markets in Europe, and more
specifically, Germany. The investment portfolio in Germany increased through
the acquisition of several office and retail properties, in Munich and the wider
areas of Nuremberg and Stuttgart. Outside Germany, there were large-volume
transactions in Budapest, Paris, Vienna, and Wiener Neustadt.
These transactions contributed to a total of over €730 million of acquisitions for
the real estate business. At the same time, divestments and changes of
ownership of a further €790 million were completed, resulting in an accumulated
transaction volume of over €1.5 billion in 2017. Although the record figure
achieved in 2016 (€2.1 billion due to one-off special items) was not reached, this
figure – from transactions inside and outside Germany – is a positive sign for
future growth. The KGAL real estate portfolio as at 31 December 2017 had a
value of c. €6.9 billion.
In the year 2017, KGAL once again exceeded the previous year’s record in
closing new leases, letting c. 106,800 m² of space. This has passed the
100,000 m² mark for the first time and represents an increase of 8% on 2016
(98,900 m²). Around 83% of new leases, c.88,500 m², is attributable to
commercial floor space outside Germany, predominantly in Austria and Hungary.
A total of around 18,300 m² came from a high number of smaller rental
transactions in Germany. The total floor area for assets under management now
comprises over 1.35 million m². Due to ongoing successful asset managment, the
average tenancy rate in KGAL’s real estate is now almost identical inside and
outside Germany, at 98.5%.