Now also in Munich: With the acquisition of the German administrative headquarters of Accor Hotellerie GmbH in Munich, Leading Cities Invest (LCI) has further expanded its German presence. LCI, the first fund under the new law with a current performance of about 3.5 % p.a., has now invested in five European locations – Hamburg, Frankfurt, Munich, Paris and Brussels.
In addition, the portfolio exhibits a broad diversity of use that includes retail, the hotel industry, offices and medical care. Once again, a CashCall applies to Leading Cities Invest with immediate effect, and the fund itself will be opened again in the coming week, further projects are in the purchasing phase.
The Accor administrative headquarters is located in the Munich-Riem district. This ensemble of buildings covers a rental space of around 7,600m² and is a striking structure directly adjacent to the Messestadt Riem convention center entry. Riem is the location of one of the most significant exhibition and conference centers in Europe and one of the largest and most important urban development areas in Germany. Munich is one of the most economically successful and fastest growing metropolises in Europe and home to numerous major companies. The Munich real estate market is one of the most popular investment locations anywhere in Europe.
The building ensemble at Hanns-Schwindt-Strasse 2-4 was built in 2001 and has a modern entrance hall at the apex of the two isosceles wings. The premises are divided over two basements, a ground floor and three upper floors. The building has 97 underground parking lot spaces and a further 18 spaces in the courtyard. The entire building is currently leased to Accor Hotellerie GmbH until 2021 with an option to extend the leases. Over 330 hotels of different brands in Germany belong to the French hotel group which, with a turn-over of about €5.5bn and around 180,000 employees in almost 100 countries, is one of the largest hotel operators in the world. The structural layout of the property in Munich-Riem also permits division of the building ensemble into 10 rental units. The seller is the investment company of Hannover Leasing. No information has been released on the selling price. CBRE was involved as an intermediary.
LCI is leveraging the potential offered by the world's major cities. The fund management faces the high level of competition for quality real estate evident in this economic environment through prudent and selective acquisition of smaller properties at attractive locations in cities with a bright future. Suitable investment properties have successfully passed through the research and portfolio models developed by KanAm Grund – the C-Score Model for selection of suitable leading cities as investment locations, and the Property Selection Model (PSM) which determines the best property investments. This data and fact-driven property selection process allows LCI to maximize potential returns. As a new-generation open-end real estate fund, LCI is resilient for the first time against unforeseeable unit redemptions and offers greater security and the same rights to all investors.
