KanAm Grund Group purchasing real estate in Germany and Europe

Purchases in Germany, the UK, France and Belgium - New institutional fund with a focus on Southern Germany launched - Several new products in preparation in the institutional investment field like LEADING CITIES NORTH AMERICA

Frankfurt (26 Sept. 2017) - So far this year, the KanAm Grund Group has purchased or secured the purchase of a new property almost every month. The Frankfurt-based KanAm Grund Group purchased real estate with a value of over half a billion euros in four European countries, mostly for institutional clients and special funds, but also for their own private investment range in Paris, Munich and Brussels. Simultaneously, sales with a transaction volume of over 1 billion euros have been closed across Europe and in Canada. Thus, the KanAm Grund Group currently has around 3.6 billion euros worth of assets under management, half under fund management mandate and half under asset management mandate, and has been able to continuously increase its client base to include institutional investors from Asia and France, plus German institutional investors and German private clients.

Alongside the increase in value of the individual portfolios, KanAm Grund Group, last calendar year, paid out over 4 million euros each working day to private and institutional investors, a total of more than 1 billion euros over the year. With effect of 31 December, 2016, the KanAm grundinvest Fonds was transferred to the depot bank. Within four years and 10 months of the termination of the special assets around 95 percent of the original real estate holdings worth around 6.4 billion euros have been sold. In the last six months before the transfer to the depot bank 15 properties with a volume of around 1.7 billion euros were sold, halving the fund volume once more. The last pay-out took place this June. The annual performance by the end of June 2017 of this, now largely dissolved fund, showed a positive 1.3 percent.

Currently, three new special funds and the LEADING CITIES INVEST (LCI), as public fund of the KanAm Grund Group, are in an investment phase, the marketing of a new special AIF is being prepared 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 next year. Two further asset management mandates have also been added.

KanAm Grund Group with their investment targets have been completely in line with the current trend on the global real estate markets both in terms of regions and real estate classes. 68 percent of the properties of open real estate public funds are in locations outside Germany, now mainly in the US and the UK. In order to maintain an attractive risk-return profile, the share of hotel and retail properties as opposed to office buildings in German real estate funds has been increased significantly. Open-end special real estate funds have, not least, been able to almost double the assets they were managing during the ongoing zero interest rate phase over the last 5 years. These trends positively reflect the developments and strategies of the KanAm Grund Group over the past few years.

This year KanAm Grund Group purchased three properties in the City of London for several institutional investors. These properties are One Wood Street, 68 Lombard Street and 77 Cornhill. The three London properties are being managed for the various global institutional investors by KanAm Grund Group, which continues to develop from a German real estate fund issuing company into an inter-national real estate enterprise acting globally.

With the new real estate fund for institutional investors, KanAm Grund Group focuses on Germany's strongest economic region, the South. The Fokus Süddeutschland Fonds, which has already made purchases in Frankfurt and has just secured the next project in Stuttgart, is aiming at a target volume of 500 million euros in two years, with an annual performance of 4 to 5 percent.

In the private investors' segment, KanAm will continue to look for high yield in-vestment opportunities for the LEADING CITIES INVEST, following the investments in Paris, Brussels, Hamburg, Munich and Frankfurt am Main. This year, the management undertook further purchases in Paris, Munich and Brussels. The real estate portfolio of this German fund shows a successful diversification, ranging from real estate/gastronomy, hotel, doctor's surgeries/medical services to offices and leisure. Four years after its launch, the LEADING CITIES INVEST has developed into one of the most successful open-end real estate funds of the new generation with a current annual return of around 3 percent p.a..

The independent, owner-managed KanAm Grund Group has its main seat in Frankfurt am Main, with four overseas offices in London, Paris, Luxembourg and Atlanta, as well as a "Chinese Desk", enabling Chinese investors to communicate with the KanAm Grund Group in their native tongue. With the 2016 results and the trend seen in 2017 so far, the Group has largely mastered the transition to an international real estate investment, consultancy and asset management company serving private and institutional investors.