German fund manager KanAm has concluded the first equity closing for the KanAm Grund development fund, its debut property development fund, which has a target investment volume of €500 mln.
Focusing on Germany, the initial investment involves micro apartments in the metropolitan area of Stuttgart representing an investment volume of €30 mln. The development partner is pantera.
The properties comprise around 4,000 m2 of gross floor area and have a target completion date of 2020. The company is currently working on projects involving more than 1,300 micro apartments in nine locations, which have already been purchased.
According to KanAm, the fund will also seek to invest in residential space, student halls of residence and boarding houses and offices, in partnership with established project developers.
KanAm Grund Real Estate asset management is acting as an investment advisor, while the fund is managed by Warburg Invest Luxembourg as alternative investment fund manager.
The fund investment horizon is around three years. According to KanAm, the pre-existing investor base comprises family offices.
