KanAm Grund Group makes a purchase at St Andrew Square in Edinburgh
- On behalf of a German pension fund
- Sustainable property in prime location in the Scottish capital
- Fully let on long-term leases / Standard Life Aberdeen as main tenant
Frankfurt, 23 May, 2019 – KanAm Grund Group acquired a modern mixed–use asset with office space, restaurants and a retail outlet on St Andrew Square in the Scottish capital Edinburgh on behalf of a German pension fund, die Ärzteversorgung Westfalen-Lippe (ÄVWL). The 17,000 square meter property in prime location in Edinburgh is fully let on long-term leases. Completed as recently as 2016, it has a BREEAM rating of excellent, certifying its sustainability performance. Only 200 meters from Waverley train station, with direct tram connections to the airport, the property is within direct proximity of James´ shopping center, which is due to open next year, offering shops, restaurants, a luxury hotel and apartments on 160,000 square meters. The main tenant of 4-8 St Andrew Square is Standard Life Aberdeen plc., who use the property as their Scottish headquarters. It has been agreed to keep the sales price confidential. The property was sold by Standard Life Insurance Limited INC.
Scotland's capital is a center for government and administrative offices. About a third of employment in the 500,000 inhabitant city is in the public sector and public administration, followed by finance and the closely connected IT and communication services sector. Edinburgh is second only to London as a financial services location in the United Kingdom, with the banking and insurance sector alone employing around 35,000 people.
This sector is also home to the building's main tenant, Standard Life Aberdeen, one of the world's largest investment platforms. Further tenants include retail chain TK Maxx, the restaurant “Vapiano”, a cocktail bar and the restaurant "The Refinery", "The Ivy" restaurant, Asian noodle kitchen "wagamama" and Argentinian steak house “Gaucho”.
The buyer of the property is a real estate fund whose main investor is the Ärzteversorgung Westfalen-Lippe (ÄVWL). The ÄVWL is an institution of the Medical Association of Westphalia-Lippe and is one of Germany’s largest occupational pension funds. With assets under management of 13.8 billion Euro at present, including real estate investments of around 3.0 billion Euro (equity at market values), the ÄVWL is responsible for the old-age security of 60,000 members and retirees.
KanAm Grund Group purchased the property on behalf of the German pension fund through the investment and asset management platform KanAm Grund REAM and will also be in charge of the asset management.
The British environmental certification BREEAM (Building Research Establishment Environmental Assessment Method), is the world's oldest and most widely used certification system for sustainability performance.
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.