KanAm Grund Group, the German real estate fund manager, has purchased an asset in the suburbs of Munich for its southern Germany-focussed fund (Fokus Süddeutschland Fonds).
TechPark Oberhaching, situated to the southeast of the Bavarian city, is a multi-storey building comprising office and manufacturing space over 12,500 m2. It was built in 2000 and is currently undergoing a major refurbishment. The main tenant is enigineering service provider HTG High Tech Gerätebau.
The deal is the third investment for the fund after transactions in Stuttgart and Frankfurt. Overall, it has a target volume of €500 mln within two years and an annual performance of 4-5%.
According to KanAm, about 36% of the German population lives in the southern states of Bavaria, Baden-Württemberg and Hesse, regions with the highest income levels and lowest unemployment figures in Germany. Munich, Frankfurt and Stuttgart accounted for about 44% of the office space portfolio and around 61% of the investment volume of the so-called 'Big Seven' last year.
In terms of retail, seven of the 10 most significant locations are in Southern Germany, including Mannheim, Nuremberg and Freiburg.