28.01.2021
′KanAm Grund Öffentliche Institutionen Deutschland′ invests in Dresden
- The Free State of Saxony is tenant of the first acquisition
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Specialized real estate fund for savings banks and banks with solvent public sector tenants
Specialized real estate fund for savings banks and banks with solvent public sector tenants
The KanAm Grund Group starts the new year with a new specialized real estate fund – KanAm Grund Öffentliche Institutionen Deutschland, aimed at banks and savings banks. The coronavirus pandemic has caused many investors to focus on reducing risk in their portfolios. The new specialized real estate fund has fixed investment criteria, and only acquires properties let to solvent tenants in the public sector with long-term lease agreements. The property Hansastrasse 4 and 6 in Dresden, which is let to the Free State of Saxony, is the first acquisition completed at the turn of the year. The target volume of the new fund is over EUR 500 million, spread over at least 10 properties in political centers such as state and federal capitals and also supraregional and regional administrative centers such as Cologne, Frankfurt and Leipzig.
The Free State of Saxony is the tenant of the first acquisition, located at Hansastrasse 4 and 6 in Dresden, represented by the Staatsbetrieb Sächsisches Immobilien- und Baumanagement, which has rented long-term for the ministry. The building, from the Wilhelminian era (built 1899), has been renovated and modernized in the past two years and extends to 4,600 square meters. The entire building is occupied by the Ministry of Justice on a long-term lease agreement. The seller was Aurelis Real Estate. The parties have agreed not to disclose the purchase price. Aurelis Real Estate specializes in developing properties, upgrading its own existing properties for commercial tenants and constructing new buildings. Part of the corporate strategy is also to realize value and, in return, acquire new commercial properties with value creation potential in metropolitan regions.
Within the past three years, the supply of vacant office accommodation in the Saxon Elbe metropolis has almost halved, currently standing at only 105,000 square meters. The resulting vacancy rate of 4.2 percent is the lowest ever recorded since reunification. This lack of supply has caused a noticeable increase in rental values in the Saxon state capital.
The Frankfurt-based KanAm Grund Group is continuously expanding its portfolios for institutional investors. The new KanAm Grund Öffentliche Institutionen Deutschland belongs to the group of real estate funds specially tailored to the needs of banks and savings banks. These include the Fokus Süddeutschland Fonds, Fokus Norddeutschland Fonds and the KanAm Grund European Cities KI, all of which are part of the KanAm Grund Group's growing family of specialized institutional funds. Properties from these funds are not only located in Germany, but also in France, Great Britain, Belgium, the Netherlands, Luxembourg and Switzerland, among others. The customers of this KanAm Grund Group fund family include not only banks with their investments, but also companies and church assets, pension and pension funds as well as high net worth family assets.