20.11.2018

LEADING CITIES INVEST adds logistics portfolio in Germany to the mix

6 logistics centers in northern and central Germany near or within conurbations such as Kiel/Hamburg, Bochum and Leipzig

Frankfurt (20 November, 2018) - To add to their Europe-wide real estate portfolio, LEADING CITIES INVEST (LCI) has purchased several logistics sites in Germany, serving the logistic needs of towns and cities. With the Hexon portfolio, LCI has bought a Core Plus Investment, which will facilitate the further diversification of the open-end real estate fund portfolio both in terms of geographical locations and usage types. The Hexon portfolio consists of six newly built properties in various locations throughout central and northern Germany. These properties, which are under long-term lease, form part of the network of branches of a European market leader in the B2B vehicle parts trade. In line with the agreements reached, the sales price will remain confidential.

The demand for real estate in the industry and logistics sectors has been steadily on the increase. The share of this asset class in the total commercial transaction volume has never been higher (2017: 15 percent vs. 9 percent in 2016). In 2017, the transaction volume for real estate in the logistics and industry sectors in Germany reached a record total of 8.7 billion euros.

It is worth noting that the properties that form part of the Hexon portfolio are not categorized as pure logistics properties. They fall into the "light industrial" category, i.e. properties that not only serve for the distribution and storage of goods, but also for manufacturing and administration. Compared to pure logistics properties, they offer more complexity in terms of their technological equipment. Due to the excellent strategic locations of these properties, the potential for them being used for other purposes in the long term is relatively high. Considering the increase in online trade, logistics properties in central locations are gaining more and more importance.

LEADING CITIES INVEST is using the Hexon portfolio to not only diversify the portfolio in terms of usage types but also in terms of locations. Alongside these 6 logistics properties in Germany, LEADING CITIES INVEST holds investments in 16 other properties within nine cities throughout four countries with various usage types. The fund holds investments in the German cities of Munich (2x), Frankfurt, Hamburg and Dresden, as well as in the European metropolises of Paris, Brussels, London and Edinburgh. Recently, the LCI further diversified its locations with an investment in Toulouse. So far this first new generation real estate fund for private investors has always achieved or exceeded its self-imposed target of an annual performance of 3 percent.

The LEADING CITIES INVEST takes advantage of the growth potential of future-oriented cities with a high potential for further development and harnesses it for private investors. The investment spectrum includes a range of different types of commercial properties, from select office buildings, retail outlets and renowned High Street properties to Hotels. With the C-SCORE and the Property Selection Model (PSM), KanAm Grund applies two research and portfolio models that were developed in-house, in order to identify promising real estate markets and properties for the LEADING CITIES INVEST. The two models work hand in hand and, in all recent transactions, offered important data on quality and expected performance. The newly-developed G-Score Model is a further optimization of this approach specifically for Germany.

About the KanAm Grund Group
The KanAm Grund Group has handled a transaction volume of over USD 32 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.


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