LEADING CITIES INVEST invests in Toulouse

The portfolio now includes 16 properties in nine major European cities - The portfolio now includes 16 properties in nine major European cities

Frankfurt (04 October, 2018) - With the acquisition of the office building Le Galilée in the growing metropolitan area of Toulouse, centre of the aeronautical industry, the LEADING CITIES INVEST (LCI) has successfully expanded the portfolio into the French regions. This distinctive building is located in close proximity to the orbital motorway surrounding the city and the Aéroport Toulouse-Blagnac. The area features attractive infrastructure (office and residential buildings, retail, restaurants and hotels) and an excellent connection to the public transport network. Renowned companies located in the area include EADS and Airbus. Toulouse is France's fourth largest city, with the densely populated and highly popular metropolitan area being home to around 1.3 million inhabitants. The C-SCORE-Model, which KanAm Grund developed specifically for the LEADING CITIES INVEST, counts Toulouse as a city of national importance (Leading Cities national). Predictions expect a population increase of more than 11 percent over the next ten years. Contract negotiations for further properties are in their final stages, meaning the CashCall for the LCI remains in place.

The LEADING CITIES INVEST now holds investments in 16 properties within nine cities across four countries, including various different types of occupancies. The fund holds investments in the German cities of Munich (2x), Frankfurt, Hamburg and Dresden, as well as in Paris, Brussels, London and Edinburgh. With the Toulouse purchase, the LCI undergoes a further diversification in terms of location. As the first new generation real estate fund for private investors, the LCI closed last year well above 3 percent.

LEADING CITIES INVEST makes the most of the growth potential of future-orientated cities capable of further development for private investors. Investments are made in a range of commercial properties, including a wide variety of tenancies, ranging from selected office buildings, retail outlets to properties in prominent High Streets and hotels. With the C-SCORE and the Property Selection Model (PSM) KanAm Grund uses two research and portfolio models, developed in-house, to identify promising real estate markets and properties for the LEADING CITIES INVEST. The two models build on each other and in all recent transactions have offered important data on quality and expected performance. With the newly developed G-Score-Model, this approach has been further refined specifically for Germany.

Since the 1980s, Toulouse has developed into one of the world's most important centres of the aeronautical industry. The sector employs around 34,000 people in the area. Alongside the aviation (Airbus and ATR) and aeronautical industries (EADS: European Aeronautic Defence and Space Company), the city is also home to the mechanical engineering, iron and textile industries and is an important centre of trade and infrastructure. Toulouse also stands out because of the 'hybridisation' of its business sectors, an intelligent combination of start-ups and large institutional companies.

The location of Le Galilée, within a dynamic neighbourhood of Toulouse-Blagnac, opposite Airbus, the A 380 workshop, the new Airbus 'Wings Campus' and the Airbus Academy, is outstanding and also offers excellent public transport connections. Tenants will struggle to find buildings with higher technical specifications. The real estate market in the area is continuously expanding.
 
Le Galilée, built in 2010, includes two office buildings, both comprising ground floor, five upper floors and one underground level. The two buildings are connected by an underground garage. The entire property includes around 10,500 square metres of lettable space, plus 121 external and 248 underground parking spaces. The property is fully let. No information has been released on the selling price.

The tenants are AKKA Technologies and SOGETI. Akka Technologies is a European engineering and technology consultancy founded in 1984, working in the aviation, railway, aeronautics and automobile sectors. It employs 15,000 staff in over 50 locations worldwide, and in 2017 turned over 1.3 billion euros. SOGETI is an IT company focusing on software tests and quality management services, which employs 25,000 staff across 15 countries.

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.nt vehicles involved.