Germany-based KGAL Investment Management has purchased KönigsTOR, a residential development in Regensburg, Germany, for its KGAL Wohnen Core 3 fund.
The up to 12-storey building will comprise 392 modern flats and six commercial units. The property is scheduled to be completed by mid-2023.
”Regensburg has an exceptionally high job density and a correspondingly strong GDP. Furthermore, Regensburg has for years been the German city with the highest proportion of single-person households (over 57 per cent in 2020). This applies not least to the Königswiesen district, which is located close to the university” said KGAL in a press release.
“The new, high-quality district centre “KönigsTOR” offers not only three- and four-room flats, but above all modern one- and two-room flats. It therefore precisely meets the demand in Regensburg’s residential rental market,” explained André Zücker, Managing Director and Head of Real Estate of KGAL Investment Management. “Another plus for prospective tenants is the sustainable energy concept with its below-average heating costs.” Heat pumps using geothermal energy as a source cover more than two-thirds of the heating energy requirements, while a CHP plant takes care of almost all the rest.
The KönigsTOR residential quarter is divided into six interconnected buildings. The 392 flats with a total rental space 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 have been let on long leases to the Sparkasse Regensburg, full-range food retailer Rewe and food discounter Netto. They are scheduled to be ready for occupancy as early as 2022. The underground car park beneath the neighbourhood centre offers 640 parking spaces and various bicycle stands. A spacious neighbourhood square and a children’s playground will be created in the open spaces. The “KönigsTOR” fulfils the expectations of a contemporary concept for neighbourhood living.
“In the eight months since the first closing of KGAL Wohnen Core 3, we have already allocated more than 70 per cent of the fund’s €500 million equity,” commented Christian Schulte Eistrup, head of the international client business at KGAL Investment Management. “In addition, we have achieved excellent regional diversification with the five properties in the portfolio, as we are now represented in the west, east, north and south of Germany with KGAL Wohnen Core 3.”
