27.07.2021
KanAm Grund Group acquires property in the historic city center of Luxembourg
- Rented by the state of the Grand Duchy
The KanAm Grund Group has acquired a listed building that is entirely let to the state for one of its specialized real estate funds for institutional investors in the historic city center of Luxembourg. The property with around 3,000 square meters of office space and 433 square meters of archive space is located on Rue Plaetis. The Luxembourg state has housed several state and public institutions in the property. The historic building, formerly used as a brewery, was extensively renovated in 2006. Since many ministries, public institutions and the courts (“Cité Judicaire”) have settled in this historic and prestigious inner city area, the old town enjoys the reputation of a so-called Ministry District. The parties have agreed not to disclose the purchase price.
With the PLAETIS property, KanAm Grund European Cities KI will in the future be represented with the first property in Luxembourg. The real estate portfolio will be further diversified both geographically and in terms of the tenant mix and and the focus on prime locations further emphasized. The KanAm Grund European Cities KI is exclusively invested in prime office properties. The already low tenant default risk of the fund is consolidated with the state of Luxembourg as a long-term tenant at a very low passing rent. The Luxembourg office property market stands out clearly from the European context because of its stability. This market is characterized by a low vacancy rate, low investment risk, and unbroken investor demand.
KanAm Grund Europe Cities KI, now invested in France (31%), Belgium (16.8%), Ireland (31.1%) and Luxembourg (21.1%), is part of the growing family of specialized real estate funds at KanAm Grund Group for institutional investors. The Frankfurt-based KanAm Grund Group is continuously expanding these portfolios for institutional investors. Depending on the investor strategy, the KanAm Grund Group offers investments in office, hotel, retail, and logistics in the core, core plus, value add, and development risk classes: in Germany, Europe, and North America. The customers of this KanAm Grund Group fund family include banks with their Depot A investments, companies and church assets, pension and pension funds as well as high net worth family assets.