KanAm Grund Group closed the first fundraising round for its inaugural German property development fund, which has a target of more than €500 million.

The KanAm Grund German Development Fund will invest in micro-apartments, residential properties, student housing, boarding houses and offices. Its first project, in partnership with German property developer pantera AG, involves 121 micro-apartments in Esslingen, comprising about 4,000 square meters of gross floor area and costing around €30 million.

The project is expected to be completed in 2020, and the fund has a pipeline of more than 1,300 micro-apartments in nine locations.

The fund has a three-year investment horizon and an existing investor base of mostly family offices. KanAm Grund Real Estate Asset Management GmbH & Co. KG is the fund's investment adviser, and Warburg Invest Luxembourg SA is its alternative investment fund manager.