“Core plus” strategy proves successful

KGAL Infrastructure expands overseas presence significantly in 2018 – KGAL Group’s Infrastructure asset class succeeded in expanding its presence outside Germany in 2018 considerably through its KGAL ESPF 4 Renewable Energies fund. KGAL, an independent investment and asset management company, was able to acquire attractive project locations and strengthen its base of international investors. The total investment volume managed was €2.9 billion as of 31 December 2018 (2017: €2.5 billion).

In 2018 the KGAL Group Infrastructure division succeeded in internationalising it’s investor base, as well as acquiring good locations for renewable energies projects all over Europe. “Prime locations are scarce and must be acquired now,” says Michael Ebner, spokesperson for the Management Board of KGAL Investment Management GmbH & Co. KG. The previous year’s investments earned the Infrastructure division a leading market position on the European Renewable Energies market. According to Ebner: “We benefit from having extensive technical expertise, active asset management and many years of experience.” The company intends to develop and implement these kinds of projects to a greater extent in the 2019 financial year.

New to the KGAL ESPF 4 fund: offshore wind energy and Eastern Europe

By the end of 2018, the Renewable Energies fund had already secured equity commitments totalling €411 million, largely from foreign investors based in France, the Netherlands, Italy, Luxembourg and the United Kingdom, as well as investors from Germany. “We are recognised abroad as a well-established asset management company,” explains Alexander Rietz, Portfolio Manager for the KGAL ESPF 4 fund. Florian Martin, Managing Director of KGAL Capital GmbH & Co. KG, added: “Institutional investors appreciate the “core plus” strategy of the fund and see the benefits of this approach in the current market environment.” “Core plus” depends on a balanced blend of greenfield and brownfield investments, and is strengthened through an active asset management approach, as Rietz points out: “The appreciation in value is primarily achieved by the asset manager.” The KGAL ESPF 4 fund is already participating in various wind farm and photovoltaics projects in Italy, Sweden, Germany and Bulgaria. The total potential investment value is approximately €1–1.2 billion. Final closing will be on 30 June 2019.


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