KGAL Expertise Real Estate 09

REAL ESTATE
As of: September 2014
Expertise AND EXPERIENCE SINCE 1968
expertise / REAL ESTATE 3
THE KGAL GROUP
KGAL EXPERIENCE
in REAL ESTATE
1968 Launch of structured finance business in the form of traditional real estate
Since 1968, the KGAL Group has been designing innovative finance
leasing models; to date numerous transactions with Siemens, BMW, Deutsche Telekom,
increasing number of interesting investment solutions for private and
Linde, Lufthansa, EDEKA Group and many others.
1979 First real estate fund for
1985 Pioneering project for municipal leasing: Gasteig
cultural centre for the city of Munich. 1988 First real estate leasing for buildings
at Frankfurt Airport. 1992 First US fund: “Bertelsmann Building” office tower in
New York. 1993 First real estate retail fund for “City Carré” administration building
in Berlin. 2001 First Austrian fund on Modecenterstrasse in Vienna. 2003 First
solutions for real assets. Over the past 35 years, they have created an
institutional investors and have thereby established themselves as an
asset manager for long-term real capital investment.
institutional investors.
Canadian fund with two office real estate properties in the centre of Toronto. First club
deal for insurance companies, “aviva Munich” office complex.
2006 Opening of
“Asset Management Austria” branch in Vienna and first Austrian fund for institutional
2006 / 2007 Early sale of the Canadian properties in Toronto and
Edmonton with a return 18 % higher than forecast. 2008 First residential real
estate fund “KGAL/HI Wohnen Core II” for institutional investors. 2009 First English
fund with an office building in London. 2011 First French fund with an office real
estate property in Paris. 2012 Early sale of the London property Francis House for
around 40 % more than the original purchase price. 2013 First retail park fund for
institutional investors “Austrian Retail Park Portfolio“ (ARPP). 2013 / 2014 First
investors.
mixed use fund “City of Tomorrow” (Stadt Morgen) for an institutional investor.
The KGAL Group’s service portfolio includes the design and management of
funds for institutional investors as well as family offices and foundations.
The Group manages an investment volume of EUR 24.6 billion and has 316
employees (as of 31.12.2013).
The core asset classes are real estate, aviation and infrastructure.
Real asset investments are increasingly popular with investors, because they
show little correlation to other asset classes. Portfolio diversification and using
a professional management lead to a positive return on appropriate risk
structures.
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EXPERTISE IN
REAL ESTATE
REAL ESTATE PORTFOLIO
As a wholly owned subsidiary of KGAL GmbH & Co. KG, KGAL Investment
Management performs the role of an investment manager for new funds
- in the real estate, aviation and infrastructure asset class - as a regulated
EMPLOYEES
investment management company.
OTHER
OFFICE
At KGAL Group 71 employees in the Real Estate department secure access
approx. 35.4 %*
to markets (transaction management), develop attractive products for
(Logistics, industrial, hotel, other)
investing in real estate (portfolio management), manage investments with
a wide range of financing and investment concepts (asset management)
approx. EUR
and enable the company to respond quickly to market developments at any
time (risk management).
7.9
approx. 52.8 %*
BILLION
Active investment volume in
real estate as of 31.12.2013
KGAL has been active in Real Estate as an asset class since its foundation
in 1968. Until today it has structured and financed thousands of real estate
properties as individual or portfolio transactions for retail funds, private
placements, special funds and other structured financing solutions.
Real estate, being the most traditional and established type of real assets,
is becoming increasingly popular today. Investors acknowledge the importance of structured investments in sustainable assets with stable returns.
COMMERCIAL
This means prioritising stability over the maximisation of returns.
approx. 6.4 %*
RESIDENTIAL
approx. 5.4 %*
*The percentages shown in the breakdown by types of use refer to the active funds of the real estate investments as of
31.12.2013
“The importance of real estate as an asset class has
grown in recent years. Within the risk-return spectrum, stability and experience of an asset manager are
very important for institutional investors. KGAL has
more than 46 years of experience and 7.9 billion Euro
managed investment volume in real estate.”
Stefan Ziegler, MANAGING DIRECTOR KGAL Investment Management GmbH & Co. KG
4.81%
4.81 % p. a.* AVERAGE ANNUAL cash
distribution OF ASSETS UNDER
MANAGEMENT (EUR 2.2 BILLION)
* Balance as of 2012
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KGAL’s real estate investments
in Germany and Austria
THE BENEFITS OF PORTFOLIO DESIGN
(EXTRACT)
Concepts that combine several real estate objects used in a variety of ways in different locations in one fund, spread the risk
and generally improve the long-term performance of the fund.
hamburg
ARD-Studio (NDR) Hamburg
Hamburger Wasserwerke technical centre
Lokstedt residential portfolio
Niendorf residential portfolio
Schwerin
NDR broadcasting centre
BREMEN
THE PORTFOLIO
Bank and office building
A real estate portfolio focuses on:
berlin
City Carré Berlin
IHZ Internationales Handelszentrum
Maritim proArte Hotel
WBM residential portfolios
Essen
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marketable properties in prime locations,
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objects with several tenants,
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does not focus on an individual tenant credit rating,
◼◼
is not limited to the marketing opportunities of one single asset type.
Deutsche Bank bank and office building
The main objective of the portfolio fund is to generate a risk-adequate return and, stable returns from the purchase,
Düsseldorf
Köln
Leipzig
Various residential portfolios
White Max residential high-rise
municipal utilities head office Düsseldorf
K-Blumenberg residential portfolio
bonn
Telekom head office
Bank and office building
PORTFOLIO FEATURES
Erfurt
Commerzbank bank building
A key aspect of fund performance is not just the selection of suitable sites and investment types.
The portfolio must be:
Frankfurt
Mainz
DB Cargo office building
management and sale of the real estate objects.
Airmail-Center Deutsche Post
Fraport airport real estate
Lufthansa Aviation Center
Europaviertel residential portfolio
◼◼
actively managed from a technical, commercial and administrative point of view.
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managed in this way for the entire life cycle of the assets.
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continuously monitoring the market, in particular with respect to asset acquisitions and disinvestments.
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documented with investor reporting, made available on a regular basis, and tailored to the specific demands of
investors.
BENEFITS OF DIVERSIFICATION
stuttgart
Deutsche Bank bank and office building
Filderlofts Scharnhauser Park airport
multi-storey car park and office towers
S-Vaihingen residential portfolio
◼◼
Spreading risks by purchasing several objects.
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Diversification achieved by the selection of suitable sites and tenants with good credit rating.
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Optimising return/risk profile and enabling stable distributions to investors.
MUNICH
Allianz Arena
Aviva München
Gasteig Kulturzentrum
München Airport Center
Ten Towers Telekom Center München
Hackerhöfe residential portfolio
Pasinger Hofgärten
MONA
VIENNA
laxenburgerstrasse 2
erdberger strasse 198c
erdberger lände 40–48
Hietzinger Kai 101–105
Thomas-Klestil-Platz 11
Kölblgasse 8–10
Hainburger Strasse 33
Lasallestrasse 9a
Modecenterstrasse 14
VARIOUS RETAIL PARKS ACROSS
AUSTRIA
DIFFERENT SITES AND LOCATIONS
+ VARIOUS TYPES OF USE
+ several TENANTS
= STABLE, SUSTAINABLE RETURNS
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Aerial view of Munich city center (Photo: Peter of Felbert)
Aerial view City of London (Photo: Thomas L. Fischer)
LOCATION, LOCATION, LOCATION
Investing in real estate –
thinking long-term
WE SPECIALISE
IN THREE AREAS
The current discussion about real estate often focuses on
similar topics: Explosion of real estate prices, prime loca-
1. CORE LOCATIONS
2. Footfall locations
3. RETAIL locations
tions, core real estate and investments in A-grade cities.
With these topics in mind, new solutions are needed: we
have to identify long-term trends and analyse the future
development of cities.
1. 1.2. 2.
3. 3. 1. 2. 3.
1. 2. 3.
1. 1.2. 2.
3. 3.
1. 1.2. 2.
3. 3.
1. 2. 3.
Our fundamental ideas are based on the following
questions:
◼◼
What will the cities of tomorrow look like?
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What strategy does this give rise to for investments
◼◼
in urban areas?
Use:Office
Use:
e.g. city district centres,
Use:
What will shape the cities of the future and how will
Densely built urban areas
Indicator / Location:
commercial building
Indicator / Location: Cars welcome;
they develop?
◼◼
What can be learned from major growing cities in Europe,
Where: Limited to city centres
Indicator / Location: Ideal public transport connections,
popular area with specifications
Focus on the “Big 7” cities*
for similar projects, if necessary;
sub-centre in urban context
high level of footfall
like London and Paris?
◼◼
In what context is the development of metropolitan
* Munich, Stuttgart, Frankfurt, Cologne, Düsseldorf, Berlin, Hamburg
areas in Germany taking place?
1. 2. 3.
Retail parks
1. 3.2. 3.
1. 2. 3. 1. 2.
1.3.3.2. 3.
1.1. 2.2.
1. 3.2. 3.
1. 2.
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Aviation Portfolio Fund 1 | HERSTELLER UND FLUGZEUGTYPEN 11
COMPREHENSIVE FUND MANAGEMENT
FROM acquisition TO MARKETING
The quality of KGAL funds is based on the experience of our own in-house experts. They estimate risks and potential for
added value and actively look after the assets for the duration of the funds.
„A long-term perspective is
needed when investing in real
Our asset classes demonstrate a clear separation of functions in the areas of transaction, asset, portfolio and risk management. The portfolio management assumes full responsibility for investments.
estate. We analyse demographic changes and concurrent
trends carefully.The question
2
PORTFOLIO MANAGEMENT
of how real estate properties fit into the cities of
TRANSACTION MANAGEMENT
1
4
Acquisition
1
TRANSACTION MANAGEMENT
Sales
ASSET
MANAGEMENT
tomorrow in terms of
location, size and function is
crucial for our investments.“
André Zücker, HEAD OF REAL ESTATE
KGAL Investment Management GmbH & Co. KG
3
Risk Management /
Fund Controlling
1 Transaction management
2 Portfolio management
Continuous market presence and monitoring
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Clear strategic guidelines for funds
Acquisition and sales of investment objects
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Continous monitoring to reach objectives
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Ensure access to relevant markets
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Reacting to changes in the market
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Completion of individual transactions
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Active management of the portfolio
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3 RisK management
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Identification, measuring, managing and reporting
4 Asset management
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of relevant risks
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management as well as the performance of
Regular monitoring of key parameters for the market,
fund and investment level
Development of recommendations for action
Primary responsibility for the professional
the special purpose vehicle
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Close collaboration with portfolio management
of the funds
kgal gmbh & co. kg
Tölzer Straße 15 · 82031 Grünwald
T + 49 89 64143 - 0
F + 49 89 64143 - 150
As of: September 2014
www.kgal-group.com

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