08.10.2019

LEADING CITIES INVEST acquires a fully leased office property in the center of Barcelona

Controlled growth of fund with stable return of 3 % p.a. - New CashCall is expected to commence again from mid-October

Frankfurt (08.10.2019) – LEADING CITIES INVEST, part of the KanAm Grund Group, has purchased the Pau Claris 158-160 office property in the center of Barcelona. With an area of around 7,500 m², the property is leased completely to the Generalitat de Catalunya, the institution for political administration of the autonomous community of Catalonia, and currently occupied by the office of the Director of Public Prosecutions. Pau Claris is in the same district as the world-famous Sagrada Familia (Basilica of the Holy Family) and only a few blocks from the Passeig de Gràcia shopping thoroughfare. This means that LEADING CITIES INVEST is now also present in the capital of Catalonia, the strongest economic region in Spain. LEADING CITIES INVEST has been offering sustainable returns on investment with a maximum level of security for more than five years. The target return in 2019 is once again 3 % for the year. Although the cash flow is heavily regulated through the CashCall/Stop strategy, fund assets grew this year by more than 36 %. By contrast, refunds only amounted to 0.3 % of fund assets, indicative of a loyalty rate of 99.7 % among LEADING CITIES INVEST investors. A new CashCall is expected to commence again from mid-October, and LEADING CITIES INVEST is open for deposits.

The Pau Claris office property is located in the heart of the city center in a neighborhood characterized by office buildings, residential properties, retail shops, hotels and restaurants. Several metro stations are within walking distance, and a bus stop serving numerous routes is located directly opposite the property. The tenant, the Generalitat de Catalunya, will be relocating the Public Prosecutor’s office next year and, following several weeks of refurbishment and conversion, the building will be occupied by the Centro de Estudios Jurídicos y Formación Especializada. The seller is the the insurance group AXA. It has been agreed to keep the sales price confidential. KanAm Grund Group was adviced by CBRE, AXA by Savills Aguirre Newman.

With around 1.62 million inhabitants, Barcelona is, after Paris, the second most densely populated city with over a million people in Europe and no longer merely the capital city of Catalonia, a tourist magnet, a port and trading city and an industrial location. A high degree of investment in recent years means that the service sector now dominates Barcelona’s economy, and the city is fast developing to become a high-tech location. The main areas of focus are in life sciences, information and communication technologies and the growing creative industries. Barcelona has 14 science and technology parks which are linked to prestigious universities and medical institutes. A high demand for new locations, a shortage of available sites and a clear pipeline of new buildings mean that the rental market and, consequently, prime rents are experiencing remarkable growth.

With a portfolio that now amounts to 26 properties, LEADING CITIES INVEST has already invested in 19 locations in seven countries – Germany, Belgium, France, the United Kingdom, Switzerland, Poland and Spain. This real estate portfolio is notable for its extremely broad diversification, ranging from offices, industry/logistics and retail/gastronomy to the hotel trade, doctors' surgeries and medical services and leisure facilities, all 100 % leased. Together with the striking level of dynamism associated with transactions, a high occupancy rate is a clear indication of the profitability of the fund. Transformation of the energy supply to ensure sustainability will enable LEADING CITIES INVEST to save 646 tonnes of CO2 every year in future. In the current real estate fund rating of the Scope rating agency, the excellent quality of LEADING CITIES INVEST was distinguished with the third consecutive awarding of an a+AIF rating, and the asset management rating of the KanAm Grund Group was raised to AA-AMR.


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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