KanAm Grund Group makes first purchase for institutional fund in Munich

German authority for the fight against cybercrime as tenant - Three properties in Munich already - 12 transactions across six European countries

Frankfurt (13 March, 2018) – The KanAm Grund Group has made another purchase in Munich, but this time for an institutional fund. The approximately 10,000 square meter, fully-let office building Z88 is located in Zamdorfer Strasse in the East of Munich. It is the eighth property bought by the fund, which now holds investments in 8 locations across 5 European countries. In Munich, the KanAm Grund Group has invested in such buildings as CAMPUS E, the headquarters of the Bavarian state capital's IT administration at Georg-Brauchle-Ring, and the German head office of ACCOR Hotellerie Munich-Riem, both forming part of the private investment fund LEADING CITIES INVEST (LCI). The purchase of a further office building in the affluent Munich suburbs for institutional investors is currently under preparation. In 2017 alone, the KanAm Grund Group carried out a total of 12 transactions across six European countries, dealing with real estate worth approximately 880 million euros, at an average of one property per month. Over the past year, the Frankfurt-based, internationally active group was able to continually expand its customer base by gaining institutional investors from Asia and France, as well as institutional investors and private customers from Germany. LEADING CITIES INVEST, the first new generation real estate fund for private investors, concluded 2017 at 3.3 percent.

The Z88 property is located in Bogenhausen-Zamdorf on a stand-alone plot of land. It is a multi-story, axially symmetrical U-shaped office building, which was built in 2002 and is currently undergoing alterations for the new tenant within the framework of the new tenancy agreement. All building work is scheduled to be completed by mid 2018. The property has, however, already been under complete lease to the tenant since 1 September 2017, who will move in gradually once the building work is completed. Z88 was sold by the Fuerth P&P Group of real estate project developers. It has been agreed to keep the price confidential.

Tenants are the German Institute for Federal Real Estate (BImA, Bundesanstalt für Immobilienaufgaben), who are using the property for the German Central Office for Information Technology in the Security Sector (ZITiS, Zentrale Stelle für Informationstechnik im Sicherheitsbereich,www.zitis.bund.de). ZITiS is part of Germany's cyber security strategy. It is dedicated to research and development and will provide the security authorities of the German Federal Ministry of the Interior with technical expertise when dealing with cyber issues. ZITiS will take on advisory and support functions and will explore and develop methods, tools and comprehensive strategies for the security authorities.

The letable space is spread across two lower levels, the ground level and four upper levels. Part of the space available to lease on the ground floor is an atrium with a glass roof. The property includes an underground garage as well as outdoor parking facilities at the rear of the property. Access to the building is via a main entrance on the north along Zamdorfer Strasse and via two staircases, equipped with lifts, which provide access to the upper and lower levels. A use of the building for multi-tenant occupancy is already possible, since each level can be divided into four areas that can be let separately. Renowned companies such as the Sueddeutsche Zeitung newspaper and Vodafone have their headquarters in the immediate vicinity. The building is perfectly linked to supra-regional transport (via the A 94 motorway) and local public transport (via tram and S-Bahn).

The successful results of the KanAm Grund Group over the past year are reflected in the current rating attributed to the Frankfurt group of companies by international rating agency Scope. The acquisitions carried out over the last year in Germany, France, Belgium and Great Britain showed an almost even distribution between private investors and international and domestic customers. The current Asset Management Rating by Scope confirmed an A+AMR rating for KanAm Grund Group. According to Scope, this award is based on the fact that the owner-managed KanAm Grund Group has become established as a real estate asset manager for private and institutional investors, particularly in the German market, due to its extremely high degree of competence in transaction and asset management.

Currently, three new special funds and the LEADING CITIES INVEST (LCI), the KanAm Grund Group public fund, are in an investment phase, the marketing of a new special AIF is in preparation and two further funds are in development, including the LEADING CITIES NORTH AMERICA, a fund for institutional investors listed in US dollars, which is to be launched exclusively this year.

About the KanAm Grund Group
The KanAm Grund Group has handled a transaction volume of over USD 30 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 (an open-end real estate fund), KanAm Grund Institutional Kapitalverwaltungsgesellschaft (a special real estate fund) and the new KanAm Grund REAM (international investment & asset management advisory). The aim of this strategic repositioning is the continuous development of the KanAm Grund Group from a German real estate fund issuing company 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.