KanAm Grund Group has bought property in Stuttgart's Europaviertel district for its new real estate fund for institutional investors. At the turn of the year, the Fokus Süddeutschland Fonds bought part of the Stuttgart Cloud No 7 building as its second property. The building houses Germany's first "Jaz" design hotel by Steigenberger Hotels AG plus retail and parking space. After investments in Frankfurt, Stuttgart became the second investment location for the Fokus Süddeutschland Fonds, which is concentrating on Germany's strongest economic regions in the south. The fund has previously bought a high street shopping location in the pedestrian precinct of Frankfurt-Hoechst and has secured a further project in Munich. Set up only a few months ago, this fund has a target volume of €300m within two years and an annual dividend payout yield of 4 to 5%.
The 61 meter tall Cloud No 7 building, which stands out from afar, is a multi-story, multi-use building at the corner of Wolframstrasse and Heilbronner Strasse in Stuttgart. The property is mainly used for hotel and residential purposes. The hotel occupies ten stories. The seven upper levels are home to 166 guest rooms, suites and meeting rooms as well as a Skybar with roof terrace. The two lower levels house the spa and conference areas plus storage and communal space. The hotel's lobby, restaurant and back-office are on ground level. The studio flats and apartments on the higher levels up to the 18th floor do not form part of the transaction. The retail space has been developed independently of the Hotel and is accessible separately via Mailander Platz. The 45 car parking spaces are accessed via the rear of the property.
The hotel operates under the Name "Jaz in the City". It is under a 20-year fixed term lease, let to Jaz Hotel GmbH, a 100% daughter of Steigenberger Hotels AG. The "Jaz in the City" brand aims to operate high-end lifestyle hotels in urban centres. It is characterized by a focus on interior design, modern technology and a spotlight on the local music and restaurant scene. The brand fully builds upon the general trend of using areas of a hotel as a public hub for social gathering and communication.
The Europaviertel district is a new multi-use district in the immediate vicinity to the Stuttgart main station, within walking distance of the main Stuttgart shopping street "Königstrasse".
The property was sold by the property company Cloud No 7 Hotel GmbH & Co. KG, a daughter of Cloud No 7 GmbH & Co. KG, which is backed by the Stuttgart property development company Schwäbische Wohnungs AG. It has been agreed to keep the sales price confidential.
