Fokus Süddeutschland adds 2 properties to Munich portfolio

A total of 5 properties already acquired in Munich, Stuttgart and Frankfurt - Matching and scoring analysis to select suitable property

Frankfurt (11.27.2018) – KanAm Grund Group has purchased two further properties in Munich for one of their real estate funds for institutional investors. Fokus Süddeutschland Fonds has invested in the east of the Bavarian metropolis, purchasing the “Am Moosfeld” property on Valentin-Linhof Strasse, a wholesale hall with an office and retail tract, and an office building with residential units on Haidelweg in the district of Pasing in the west. After investments in Stuttgart and Frankfurt, Munich, with three properties is the largest investment location for Fokus Süddeutschland Fonds, which is concentrating on Germany's strongest economic regions in the south. The fund, which was only set up last year, already acquired a multi-story building near Oberhaching on Raiffeisenallee early in the year. This property was primarily used as an office and production location. The fund has already bought into high street shopping in the pedestrian zone in Frankfurt-Höchst, purchased the first design hotel of the “Jaz” brand in Cloud No 7 in Stuttgart which is operated by Steigenberger Hotels AG and also acquired a retail space and parking.

The Munich metropolitan region forms a central part of the fund concept in this respect. About 36 percent of the German population lives in the southern states of Bavaria, Baden-Württemberg and Hesse, and the population projection for these regions is also predominantly positive. These three states are the regions with the highest income levels and lowest unemployment figures in Germany. Southern Germany is also home to three of the top real estate locations, with Munich, Frankfurt and Stuttgart all cities of international significance. These locations accounted for about 44 percent of the office space portfolio and around 61 percent of the investment volume of the so-called BIG 7 last year. Added to this, the Rhine-Main area, the Rhine-Neckar Metropolitan Region, Nuremberg and Munich are home to robust real estate locations of both national and regional importance. In the case of retail, seven of the ten most significant locations are in Southern Germany, including Mannheim, Nuremberg and Freiburg.

Matching and scoring

The fund management conducts a qualitative and quantitative analysis for the selection of suitable properties in this target region, with 16 defined target markets being continually examined on the basis of 39 indicators. Results obtained from the population structure, economic power, location characteristics and usage-specific KPIs are interpreted by rating analysts. Subsequent to this, equal importance is attached to quantitative and qualitative findings in overall scoring, enabling classification of the potential acquisition according to the categories “recommended”, “opportunity” or “not recommended” when matching location and usage type – office, retail, hotel or residential – and providing the fund management with a sound, transparent basis for making decisions.

The new properties in east and west Munich

The “Am Moosfeld” property is a wholesale hall with an office and retail tract. Both usage types are located in two spatially separated building sections. Originally built in 1984, the building was completely stripped down to the steel structure in 2017 and rebuilt. The adjacent two-story head section with retail and office spaces was newly erected in 2017. The retail and office extension is connected to the warehouse by a passage. The property includes 26 external parking spaces. The previous owner and lessor is Aurelis Real Estate which, in response to lessee requests, carried out a general refurbishment in recent years and erected the new two-story building. Agreement has been reached to keep the sales price confidential.

The property is leased to Saint-Gobain Building Distribution Deutschland GmbH which uses the building through the Raab Karcher Baustoffhandel retail brand. The group is one of the 100 largest industrial companies in the world. Saint-Gobain develops, produces and sells material and product solutions for a variety of civil engineering projects.

The “Am Moosfeld” industrial estate is located in the east of Munich in the district of Trudering-Riem and is one of the most sought-after locations for industrial and service companies. It is primarily distinguished by the presence of firms associated with the construction and automotive industries such as BayWa, DEKRA and Würth. An excellent freeway connection (with the city center only 20 minutes away and the journey to the airport taking 35 minutes) makes this estate an excellent location for these industries.

The “Haidelweg” property is located in the Munich district of Pasing-Obermenzing which lies to the southwest of the city center. The public transport infrastructure is excellent. The “Siedlung am Haidelweg” bus stop is only 400 m from the building, while bus route 265 reaches the Munich Pasing train stop (S-Bahn) in only seven minutes. The main Munich railway station can be reached from here in ten minutes.

The mixed-usage property (office, warehouse, residential) was built in 2001 and only modernized this year. It offers three (in the western building section) to four floors (in the central and eastern section) and a basement. The office building and adjacent “WEG Haidelweg 50-52” are connected to each other via an underground car park in the basement. The roof floor of the central and eastern building section houses a total of 6 residential units. The four office spaces also have a day-care center for children. There are 53 underground parking lots, fourteen outdoor parking spaces and seven further underground parking lots in the neighboring property.

This real estate is being sold by a subsidiary of Munich Residential GmbH based in Pöcking near Munich. Munich Residential GmbH is a joint venture between the Krulich Immobilien group and the Opfergeld consortium of firms. Munich Residential GmbH has comprehensively refurbished the property in the last twelve months and restructured the tenancies. The transaction was arranged through Colliers International Deutschland GmbH. Agreement has been reached to keep the sales price confidential.

About the KanAm Grund Group

The KanAm Grund Group has handled a transaction volume of over USD 32 billion since it was established in October 2000. The owner-managed company focuses on the individual needs of German and international investors, with the geographical emphasis being in Europe and the United States.
In order to set it up strategically to face the challenges of the future, the company was reorganized into three business divisions under the umbrella of the KanAm Grund Group: KanAm Grund Kapitalverwaltungsgesellschaft mbH (an open-end real estate fund), KanAm Grund Institutional Kapitalverwaltungsgesellschaft mbH (a special real estate fund) and the new KanAm Grund REAM GmbH & Co. KG (international investment & asset management advisory). The aim of this strategic repositioning is the continuous development of the KanAm Grund Group into an international real estate enterprise which provides real estate investment and asset management services to German private investors, institutional investors and international investors alike, irrespective of the investment vehicles involved.