The KanAm Grund Group has announced the launch of a new fund targeting a volume of €500 mln. The vehicle, KanAm Grund Öffentliche Institutionen Deutschland, is aimed at financial institutions looking for a core, secure property investment. As such, the fund only invests in properties let to secure tenants in the public sector with long-term lease agreements.
The fund is targeting acquisitions in political centers such as state and federal capitals and also subregional and regional administrative centers such as Cologne, Frankfurt and Leipzig.
It has made its first deal with the purchase of an asset in Dresden fully let to the Free State of Saxony. Located at Hansastreet 4 and 6 in the German city, the building dates from the Wilhelminian era and has recently been renovated and modernized. It offers 4,600 m2 of space fully occupied by the Ministry of Justice on a long term lease agreement. The seller was Aurelis Real Estate. The parties agreed not to disclose the purchase price.
