26.09.2019

KanAm Grund German Development Fund - Investments in 6 real estate development projects in just under a year

Various asset classes in 5 different locations - The fund strives for a target investment volume of over 700 million euros

Frankfurt, 26 September, 2019 – Within just under a year, the new KanAm Grund German Development Fund has undertaken six investments in five different locations across four different asset classes. This institutional fund, focusing on reals estate development projects within Germany, was only launched in November 2018 and has since contributed to projects in the metropolitan area of Stuttgart, Frankfurt am Main, Augsburg, Rostock and two projects in Munich. On average, the fund entered a new project every two months. These projects, realized in joint venture with well-established project developers, include office buildings, hotels, student halls of residence and serviced apartments with a total planned gross floor area of just under 60,000 square meters, to be developed in conversion, new construction and extension work. The target investment volume pursued lies at over 700 million euros, with an investment horizon of approximately three years. The existing investors’ base comes from the family offices sector. The first agreements to provide capital were called after as little as 6 months. Further projects are currently under consideration.

Under the framework of the cooperation, the German Development Fund finances the property purchases and provides the required equity and mezzanine capital. The project development and management of the technical and planning aspects are in the hands of joint venture partners. So far, joint venture partnerships were formed with Cologne-based pantera AG and Munich-based CV Real Estate AG. KanAm Grund Real Estate Asset Management GmbH & Co. KG acts as investment advisor. The aim is to sell the properties to institutional investors once the conceptual design is completed. LRI Group has taken on the fund administration as alternative investment fund manager (AIFM).

The first project the German Development Fund entered into involved a property in the metropolitan area of Stuttgart with 121 micro apartments in Esslingen. This was followed by a project to construction more than 200 serviced apartments at Gutleutstrasse in Frankfurt city center and to develop of around 20,000 square meters of office space at “DaVinci Campus” in the Munich East. The fourth project is also located in the Munich East, namely at Levellingstrasse in Berg am Laim, which saw the construction of around 80 serviced apartments, gastronomy and underground parking. Last but not least, the former loading yard at Augsburg Central Station is set to be turned into a hotel and office building, including serviced apartments, retail and gastronomy outlets, and a total of 5 buildings, housing serviced apartments, are planned near the waterside of the Baltic Sea in Rostock.

About the KanAm Grund Group
The KanAm Grund Group has handled a transaction volume of over 33 billion US dollars 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. The company is strategically organized into three business divisions under the umbrella of the KanAm Grund Group: KanAm Grund Kapitalverwaltungsgesellschaft (open-end real estate funds), KanAm Grund Institutional Kapitalverwaltungsgesellschaft (special real estate funds) and KanAm Grund REAM (international investment & asset management advisory). Since its strategic repositioning, KanAm Grund Group, as an international real estate enterprise, has provided real estate investment and asset management services to German private investors, institutional investors and international investors alike, irrespective of the investment vehicles involved.


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