German fund manager KanAm Grund Group has purchased a refurbished and repurposed shopping centre in Hamburg.
Financial details were not disclosed.
Named Unser Viertel – meaning Our Neighborhood – the asset is today a mixed-use complex comprisng a supermarket, retail outlets, and offices - as well as doctors' surgeries and a municipal library. It covers an area of more than 5,000 m2.
Unser Viertel is located in the affluent district of Volksdorf, north of Hamburg city centre, bordering the town of Ahrensburg.
A new perpetual fund by KanAm called 'Fokus Norddeutschland Fonds' made the purchase, as part of a core / core-plus strategy to build a portfolio in northern Germany, of office buildings, hotels, retail and residential properties. The fund is aimed at institutional investors in the banking sector, with a target volume of €300 mln and yields of 4%.
A KanAm spokesperson said: 'The fund management's investment strategy is to build an attractive mix consisting of prime quality and sustainable Core and Core+ properties which promise long-term stable yields and appreciation in value.'
The KanAm Grund Group has handled a transaction volume of over €28 bn since it was established in October 2000.