13.04.2022

LEADING CITIES INVEST broadens its Logistics Portfolio in Germany

  • KanAm Grund Group acquires the seventh logistics property for its LEADING CITIES INVEST portfolio
  • Long-term tenant of the Lambda property is the established company Diamant Fahrradwerke GmbH

KanAm Grund Group has purchased the Lambda property for its open-ended real estate investment fund LEADING CITIES INVEST (ISIN: DE0006791825). Located near the German city of Chemnitz, the Core Plus property classified as Light Industrial further diversifies the portfolio of the retail fund. The parties agreed not to disclose the price of the transaction.


As an addition to the LEADING CITIES INVEST office property portfolio at European locations, six logistics properties have been acquired in Germany since 2018. Following the acquisition, the investment fund's logistics portfolio now consists of seven properties spread across central and northern Germany, representing around 5 percent of the fund's assets. The long-term tenant of the property in Hartmannsdorf near Chemnitz is the long-established company Diamant Fahrradwerke GmbH, with origins dating back to the 19th century. Today, the company belongs to the American bicycle and cycling product manufacturer Trek Bicycle Corporation. Catella represented the vendor, while CBRE advised the buyer. 

Demand for logistics and industrial real estate continues to be high
With investment exceeding 10 billion euros last year, logistics properties were the second most important commercial real estate class in Germany, after office space. Market reports indicate that industrial and logistics properties accounted for more than 16 percent of the transaction volume in the commercial real estate investment market in 2021, the best result to date. 
Although the Lambda property will be in the logistics portfolio of LEADING CITIES INVEST it is primarily a Light Industrial Building used for the storage and distribution of bicycle parts. The building also facilitates custom built bicycles and an administration section.

The LEADING CITIES INVEST portfolio is broadly diversified
After this new acquisition, the real estate portfolio of the LEADING CITIES INVEST comprises 42 properties at 27 locations in ten countries. The annual performance of the investment fund was 2.4 percent as at March 31, 2022.1) Since its launch on July 15, 2013, LEADING CITIES INVEST has achieved a cumulative performance of 27.6 percent.1)
The first new-generation real estate fund for retail investors taps into the growth opportunities of promising cities with development potential. The investment universe includes commercial real estate of the most varied types of use. Currently, the focus is on office real estate. Logistics properties are included as an addition to the portfolio, and contribute to portfolio diversification and yield optimization. To select promising real estate markets and individual properties for LEADING CITIES INVEST, the KanAm Grund Group applies its in-house research and portfolio models C Score and Property Selection Model (PSM). Both models are based on one another, and ensure centralized delivery of data on quality and expected performance for all transactions.

 

 

1) Calculation according to the BVI method. Basis of calculation: unit value (NAV); distribution reinvested. Costs incurred at the investor level, such as the front-end load, transaction costs, securities account or other custody costs, commissions, fees and other charges are not included.
Legal information: This press release does not constitute investment, tax, or legal advice. The assessments and forecasts contained in this e-mail are based on careful research, but KanAm Grund Kapitalverwaltungsgesellschaft mbH cannot accept any liability for their accuracy. Tax information is based on the currently known legal situation. Tax treatment depends on the investor's personal circumstances and may be subject to change in the future. The historical performance of the investment fund is not indicative of future performance. Only the current annual and semi-annual reports, the sales prospectus with the Fund Rules, and the Key Investor Document are authoritative for the acquisition of LEADING CITIES INVESTMENT units. These are available free of charge from KanAm Grund Kapitalverwaltungsgesellschaft mbH, the custodian M.M.Warburg & CO (AG & Co.) KGaA in Hamburg, and the sales partners.
 


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