Fokus Norddeutschland purchases first property in Hamburg
- New real estate fund by the KanAm Grund Group
- Offer aimed at institutional investors from the banking sector
- Target volume of 300 million euros with around 4 percent performance p.a.
- First property is the "Unser Viertel" building in Hamburg-Volksdorf
Frankfurt, 04/07/2019 – The "Fokus Norddeutschland Fonds", a new KanAm Grund Group special fund for institutional investors set up by the end of June, has started off immediately by purchasing its first property in Hamburg: A center providing local shops and amenities, called "Unser Viertel", loosely translated as "Our neighborhood", in the Volksdorf district. This multi-tenant property includes a supermarket, retail outlets, offices, doctors' surgeries and a municipal library, and stretches over an area of more than 5000 square meters. This special fund by KanAm Grund Institutional Kapitalverwaltungsgesellschaft mbH is an open-end special AIF in line with the German Investment Code KAGB. Like its Fokus Süddeutschland Fonds counterpart, which was successfully launched two years ago, it is aimed at institutional investors from the banking sector. The Fokus Norddeutschland Fonds is aiming at a target volume of 300 million euros with an annual performance of around 4 percent. The next investment is in preparation.
The fund management's investment strategy is to build an attractive real estate portfolio in Northern Germany, including office buildings, hotels, retail and residential properties, and aims for a balanced real estate mix consisting of prime quality and sustainable Core and Core+ properties which promise long-term stable yields and appreciation in value. To select suitable properties in the target region, the fund management conducts a qualitative and quantitative analysis, by applying the "Germany Score" to the Northern German region. This tool, specifically developed by the KanAm Grund Group, analyses 760 pieces of economic, location and real estate data from 19 cities (including Berlin, Hamburg, Hanover, Bremen and Munster) in 9 of the German states. 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.
The KanAm Grund Group is continuously expanding their portfolio for institutional investors. The Fokus Norddeutschland Fonds joins a growing family of specialized institutional funds by the KanAm Grund Group, including the Fokus Sueddeutschland and other KanAm Grund funds with investments not only in Germany but throughout Europe. The real estate of these funds is located in France, the United Kingdom, Belgium, the Netherlands, Luxembourg, Switzerland and Germany. Clients investing in this KanAm Grund Group family of funds include banks with their depot A investments, enterprises and church assets, pension funds and high-net worth family assets.
The "Unser Viertel" property is located in the Hamburg district of Volksdorf, to the North East of Hamburg city center, bordering their Northern neighbor, the town of Ahrensburg. Volksdorf is marked by an affluent population profile. During a Germany-wide survey in 2013 the local unemployment rate, recorded 2.6 percent, classed the region as having full employment. In 2004, the property was originally conceived purely as a shopping center. Its repositioning into a center offering local services, amenities and retail outlets for this prosperous district has been well received by the population. The surroundings of the property are dominated by single family homes requiring local services and amenities. The concept of a grocery store (Edeka), the local branch of the public library, doctors' and healthcare surgeries, accountants and consultancies under one roof with underground parking facilities has had a very positive uptake. The vendor of the property is a fund affiliated with MCAP Global Finance, the European subsidiary of New-York headquartered Marathon Asset Management. It has been agreed to keep the sales price confidential.
About the KanAm Grund Group
The KanAm Grund Group has handled a transaction volume of over 32 billion US dollars 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 significant growth of the KanAm Grund Group, as 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.