KGAL launches European location rating app

German investment and asset manager KGAL has created an app which evaluates locations across Europe on the basis of a new urban index.

KGAL Location Rating (KLR) scores and indexes locations on their proximity to public transport (40 per cent); retail and service businesses (25 per cent); places to eat and drink (25 per cent); and general public amenities (10 per cent).

These differently weighted criteria generate a 0-100 index rating which reflects the prevalence of these amenities across four zones within a radius of 150 metres, 300 metres, 500 metres and 800 metres from a property’s location.

André Zücker, Managing Director for Real Estate at KGAL Investment Management, comments: “Urbanisation – people’s growing desire to live, work and play in the same urban location – is a huge global trend. Being able to rate the location characteristics of a particular real estate asset in this context is of increasing relevance to assessing its likely future performance.

“Urban centres are becoming more attractive to all generations, and it will be essential that real estate investment strategies are able to quantify the drivers of this and therefore the attractiveness of particular locations with regard to commercial property.”

KLR has been developed in collaboration with stallwanger, a consulting and software company which specialises in the application of data and digital mapping.   

Helge Vahlenkamp, Real Estate Portfolio Manager at KGAL Investment Management, comments: “In offering location rating for evaluating the attractiveness of a property location, KGAL is the only real estate company to provide a tool that complements traditional real estate asset analysis.

“By providing this kind of structured, comparative locational analysis, we will create additional transparency for our investors.”

For locations across Germany, KLR also provides additional macro-economic and demographic data together with office market data, eg on rental level and vacancy rates.