Strategic Sales Program Supports Redemption Requests, Sets Positive Outlook for 2025
Kanam Grund’s German open-ended fund, Leading Cities Invest (LCI), has taken decisive steps to address redemption requests by selling properties in Barcelona, Helsinki, and Dresden, generating liquidity of over €100m.
The assets include:
- Aragó 330-332, Barcelona: Modernized office property sold slightly above its last market valuation of €38.5m.
- Fab 9, Helsinki: Prime office building at Kasarnitori Square, initially valued at €62.6m, saw a revised price during the bidding process.
- Kugelhaus, Dresden: Retail property at Wiener Platz valued at €12.8m, with ownership transfer expected in February.
The sales mark a key milestone in LCI’s year-long program launched in November 2023 to handle a sharp rise in redemption requests, resulting in a 30% decline in fund valuation. Over the past year, LCI has divested 23 of its 41 properties, using the proceeds to stabilize fund operations.
Looking Forward to 2025
Kanam expects a turnaround in 2025, fueled by reduced redemption pressure and improved liquidity. The fund has expressed optimism about attracting new capital inflows to seize opportunities in consolidating property markets.
While further asset sales may not be necessary if redemption rates stabilize, Kanam emphasizes that new acquisitions will be key to future growth.
