LEADING CITIES INVEST ADDS THE DRESDEN 'KUGELHAUS' BUILDING TO ITS PORTFOLIO

Investment success of 3.3 percent in 2017

Frankfurt (15 May, 2018) – The LEADING CITIES INVEST (LCI) has added the Dresden "Kugelhaus" to its portfolio. This piece of real estate, well known in Dresden, houses retail outlets and a themed restaurant. It is located at Wiener Platz right opposite the main station and adjacent to Prager Strasse, the city's undisputed prime shopping location and by far the most frequented location in the central German region. The LEADING CITIES INVEST now holds investments in 13 objects in six cities within three countries, ranging in occupancy from retail and gastronomy, hotel, doctors' surgeries and medical services to office and leisure space. The first new generation real estate fund for private investors, concluded 2017 at 3.3 percent. And, in spite of a difficult market, there are plenty of real estate opportunities in the pipeline for new and existing funds in Germany and Europe this year.

Thanks to its central location at the main station, "Kugelhaus" is perfectly linked to local public transport. For individual motor vehicle users, the public multi-story car park at the main station offers a direct underground link with the building. The building, established in 2005, has recently undergone extensive refurbishment for its new and highly attractive main tenant DECATHLON, who have signed a 10 year tenancy agreement. Decathlon is an expanding French manufacturer and retailer of sports equipment and clothing. The company has over 1,000 retail outlets in 29 countries, 302 of which are located in France and 34 in Germany. Further important tenants of the "Kugelhaus" include a themed restaurant by the Rollercoaster Restaurant Service GmbH, where diners order their meals via digital menus and the food speeds through the restaurant on rollercoaster trays via stainless steel tracks, including loop-the-loops, steep turns and multiple spiral turns straight to the guests' table. The third most important tenant is the German butcher's company Radeberger Fleisch- und Wurstwaren Korch GmbH, which has been a Kugelhaus tenant since 2005.

It has been agreed to keep the details of this Dresden transaction confidential.
BNP Paribas Real Estate acted as intermediary. Dresden, Germany's twelfth largest city, has over recent years developed into one of Germany's strongest and most dynamic economic locations. At 24 percent, the economic growth of this capital of the German state of Saxony, has far exceeded the German average since 2000. Dresden, located on the banks of the Elbe river, has attracted numerous renowned companies from industry and the high-tech sector, including Infineon and SAP.

Annual report for 2017 published

With an investment success of 3.3 percent p.a. as per 31 December, 2017, the target yield of the LEADING CITIES INVEST was once again exceeded. The cumulative performance of the fund since its establishment has thus reached a gratifying 13.4 percent. Within one year, the real estate assets rose by approximately 180 percent to 207,5 million euros, the fund volume grew by around 90 percent to 204.2 million euros.

Deviating from previous practice, an early payout to investors of the LEADING CITIES INVEST was carried out as early as in December 2017. The sum of 1.88 euros per share forms part of the payout for the 2017 business year. The decision to conduct a partial payout before the end of the business year was taken in view of the reformation of the German Investment Tax Act (InvStG), taking effect on 1 January, 2018. Thus, avoiding potential double taxation with the first application of the new law. The final payout of the remaining 1.62 euros per share took place on 3 May, 2018. This takes the total payout for the business year to 3.50 euros per share.

Negotiations for the next investments for the LCI are being finalized. 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.

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.