A new KanAm Grund Group institutional fund dubbed Fokus Süddeutschland has carried out initial acquisitions in Frankfurt and Stuttgart as it targets a fund volume of €500 mln.
Its first purchase, a shopping centre in the main shopping street of Frankfurt-Höchst, comprises 9,000 m2 and is leased to seven German companies. It includes a multistorey car park with 244 spaces. Financial details were not disclosed. The company said it was currently securing the next project in Stuttgart.
The fund will focus on quality locations and a range of uses, including office, retail, hotel and residential properties. It is aiming for returns of 4-5% per annum.
Southern Germany focus
According to KanAm Grund, about 36% of the German population lives in the southern states of Bavaria, Baden-Württemberg and Hesse, and the population projection for these regions is predominantly positive. These three states are the regions with the highest income levels and lowest unemployment figures in Germany.
The southern cities of Munich, Frankfurt and Stuttgart accounted for about 44% of the office space portfolio and around 61% of the investment volume of Germany's so-called Big 7 last year, while for retail, seven of the ten most significant locations are in southern Germany, including Mannheim, Nuremberg and Freiburg, KanAm said.
The KanAm Grund Group has handled a transaction volume of more than $30 bn (€26 bn) since it was established in October 2000 on behalf of German and international investors.
