THE FOKUS SÜDDEUTSCHLAND FONDS HAS BOUGHT PART OF CLOUD NO 7 IN STUTTGART

Steigenberger Hotels AG's Jaz Hotel, retail and parking space - 3 properties purchased and secured within 6 months

Frankfurt (18 January, 2018) – KanAm Grund Group has bought property in Stuttgart's Europaviertel district for its new real estate fund for institutional investors. At the turn of the year, the Fokus Süddeutschland Fonds bought part of the Stuttgart Cloud No 7 building as its second property. The building houses Germany's first "Jaz" design hotel by Steigenberger Hotels AG plus retail and parking space. After investments in Frankfurt, Stuttgart became the second investment location for the Fokus Süddeutschland Fonds, which is concentrating on Germany's strongest economic regions in the south. The fund has previously bought a high street shopping location in the pedestrian precinct of Frankfurt-Hoechst, and has secured a further project in Munich. Set up only a few months ago, this fund has a target volume of 300 million euros within two years and an annual dividend payout yield of 4 to 5 percent.

The 61 meter tall Cloud No 7 building, which stands out from afar, is a multi-story, multi-use building at the corner of Wolframstrasse and Heilbronner Strasse in Stuttgart. The property is mainly used for hotel and residential purposes. The hotel occupies ten stories. The seven upper levels are home to 166 guest rooms, suites and meeting rooms as well as a Skybar with roof terrace. The two lower levels house the spa and conference areas plus storage and communal space. The hotel's lobby, restaurant and back-office are on ground level. The studio flats and apartments on the higher levels up to the 18th floor do not form part of the transaction. The retail space has been developed independently of the Hotel and is accessible separately via Mailander Platz. The 45 car parking spaces are accessed via the rear of the property.

The hotel operates under the Name "Jaz in the City". It is under a 20-year fixed term lease, let to Jaz Hotel GmbH, a 100% daughter of Steigenberger Hotels AG. The "Jaz in the City" brand aims to operate high-end lifestyle hotels in urban centers. It is characterized by a focus on interior design, modern technology and a spotlight on the local music and restaurant scene. The brand fully builds upon the general trend of using areas of a hotel as a public hub for social gathering and communication.
The Europaviertel district is a new multi-use district in the immediate vicinity to the Stuttgart main station, within walking distance of the main Stuttgart shopping street "Königstrasse".
The property was sold by the property company Cloud No 7 Hotel GmbH & Co. KG, a daughter of Cloud No 7 GmbH & Co. KG, which is backed by the Stuttgart property development company Schwäbische Wohnungs AG. It has been agreed to keep the sales price confidential.

Fonds concept Southern Germany
About 36 percent of the German population lives in the southern states of Bavaria, Baden-Württemberg and Hesse, and the population projection for these regions is also predominantly positive. These three states are the regions with the highest income levels and lowest unemployment figures in Germany. Southern Germany is also home to three of the top real estate locations, with Munich, Frankfurt and Stuttgart all cities of international significance. These locations accounted for about 44 percent of the office space portfolio and around 61 percent of the investment volume of the so-called BIG 7 last year. Added to this, the Rhine-Main area, the Rhine-Neckar Metropolitan Region, Nuremberg and Munich are home to robust real estate locations of both national and regional importance. In the case of retail, seven of the ten most significant locations are in Southern Germany, including Mannheim, Nuremberg and Freiburg.

Matching and scoring
The fund management conducts a qualitative and quantitative analysis for the selection of suitable properties in this target region, with 16 defined target markets being continually examined on the basis of 39 indicators. Results obtained from the population structure, economic power, location characteristics and usage-specific KPIs are interpreted by rating analysts. Subsequent to this, equal importance is attached to quantitative and qualitative findings in overall scoring, enabling classification of the potential acquisition according to the categories “recommended”, “opportunity” or “not recommended” when matching location and usage type – office, retail, hotel or residential – and providing the fund management with a sound, transparent basis for making decisions.

About the KanAm Grund Group
The KanAm Grund Group has handled a transaction volume of over 30 billion euros 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 in recent years 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.