The KGAL Group signed a purchase agreement for a new commercial building to be constructed in the Hamburg district of Wandsbek. The investment project was acquired for a special AIF (alternative investment fund) with a future-oriented mixed-use concept. The property will offer approx. 10,300 m² of rental space and 300 parking spaces. Completion is planned for mid-2016.
The project is located in an area with convenient access to public transport and an established shopping location with high pedestrian frequency and good visibility. The location and the superior quality assure promising revenue potential. This is confirmed by the high pre-letting rate. Following completion and handover, renowned tenants such as REWE, Decathlon and dm-drogerie markt will be represented at the property.
This purchase is the fund's fourth investment. The special AIF is aimed at institutional investors. Its projected volume is around €500 million. Further investments in office and commercial buildings as well as retail parks are in the pipeline.
As the second-largest German city, Hamburg is an attractive business location and a shopping destination attracting visitors from outside the region. Its continual population growth, increasing purchasing power and above-average retail centrality rating make the Hanseatic city a sought-after target for investments in the commercial property sector. The lively district of Wandsbek has also had a significant upgrade following a series of recent urban planning measures.
"In Europe, Hamburg is currently one of the key markets for the expansion of retail exposure. We are delighted that KGAL has once again succeeded in establishing itself in a highly coveted market," says André Zücker, Head of Real Estate at KGAL Investment Management GmbH & Co. KG.
The commercial building was sold by HBB Hanseatische Betreuungs- und Beteiligungsgesellschaft mbH (HBB) in Hamburg.