KanAm Grund Group's Assets under Management further increase

In 2022, KanAm Grund Group was once again able to increase its assets under management. A total of EUR 7.09 billion assets were managed by the end of the year. This corresponds to an increase of around 5 percent compared to 2021. Against the backdrop of a challenging market environment, open-ended real estate funds proved to be more resilient than other asset classes. KanAm Grund Group recorded inflows both to retail investment funds and to specialized institutional real estate funds, an aggregate transaction volume of half a billion euros and achieved success in implementing its sustainability strategy. Moreover, the real estate expert promptly reacted on the changes in the market background due to the outbreak of the war and the interest rate turnaround. 

Hans-Joachim Kleinert, Founding Partner at KanAm Grund Group, said: ‘We have added various defensive measures to our growth strategy in the interests of our investors. For example, we have been selective in taking the investment opportunities that arose for the office and logistics types of use, with seven properties acquired. We were also successful in seizing market opportunities, with two buildings from the real estate portfolio sold.’    
Olivier Catusse, Managing Partner at KanAm Grund Group, added: ‘With the purchase of three properties in Finland, Germany and Austria for the open-ended retail real estate fund LEADING CITIES INVEST, we have expanded our portfolio of assets, increased the logistics component and diversified more broadly with the new location in Austria. We have also been in a position to acquire suitable real estate for existing capital commitments and club deals in the field of specialized institutional investment funds.’

In addition, KanAm Grund Group won new asset management and property management mandates and arranged real estate financing in the amount of EUR 774.5 million. Asset management activities were also boosted. Refurbishments and other measures were implemented at several properties in accordance with strict sustainability criteria. This optimized their energy efficiency, while also increasing the prospect of rising rental income. In 2022, around 66,000 square meters of space were leased for an annual rent of around EUR 15.6 million.    

Scope affirmed KanAm Grund Group’s asset management rating of AAAMR in the real estate segment. This means that the renowned rating agency continues to attest to the very high quality and expertise of the company, which was also nominated for a Scope Award in both the retail and specialized fund segments in 2022. KanAm Grund Group continues to be in the top group of real estate asset managers. 

Performance of the LEADING CITIES INVEST     
The open-ended retail real estate fund LEADING CITIES INVEST exceeded the EUR 1 billion fund volume mark for the first time in the 2022 fiscal year, achieving a positive performance of 2.2 percent during this period.¹ Targeted investments were made in the property portfolio in order to benefit from the increase in market rents for new and renewed leases in the long term.    
The investment fund was also recently voted Alternative Endowment Fund of the Year 2023 by RenditeWerk magazine. Particular mention was made of its ‘exceptional robustness’ and ‘low tendency to fluctuate’. 

As the present conditions have not changed significantly compared to the previous year, the fund management expects that the LEADING CITIES INVEST will perform along similarly positive lines in 2023; it is currently aiming for performance of up to 3 percent by the end of the year. The fund's property portfolio is broadly diversified, with an occupancy rate of approximately 95 percent. In addition, the high proportion of almost 40 percent of public sector tenants and other long-term tenants ensures stable rental income. Appropriate rent adjustment clauses can be used to apply rent increases due to inflation. Major steps have already been taken towards net zero carbon, with a certification rate of around 80 percent for the properties held in the investment fund. Since May 2022, KanAm Grund Group’s LEADING CITIES INVEST fund meets the requirements of Article 8 of the EU Sustainable Finance Disclosure Regulation (SFDR). As of August 2022, the open-ended retail real estate fund also fulfills the requirements of the Markets in Financial Instruments Directive II (MiFID II) regarding client sustainability preferences. In addition to the ESG characteristics ‘Environmental’ and ‘Governance’, the strategic approach takes account of a possible adverse impact of investment decisions on specific sustainability factors (Principal Adverse Impacts – PAI), with the objective to reduce the carbon footprint. Thanks to it’s a (AIF) Scope rating, the fund is within the highest score of commercial funds for private investors and has one of the best-rated real estate portfolios.

Future strategy and products
KanAm Grund Group's Strategy 2025 is aimed at further expansion and growth of the international real estate company. In addition to increasing efficiency by adapting structures and processes, the required expertise was also expanded. This was accompanied by personnel growth of over 35 percent in the past two years. New branches have been established in London, Madrid and Dublin in recent years, the Investment and Asset Management Germany and Investment and Asset Management Europe divisions have been introduced, and a Development department has been set up. Depending on future market developments and cash inflows, KanAm Grund Group intends to take advantage of opportunities that arise on the international property markets in 2023 to selectively expand its real estate portfolio. The focus is on the office and logistics types of use. In addition, the range of specialized funds for institutional investors will be expanded to include a European residential property fund and an Ecological fund (with classification in accordance with Articles 8 to 9 of the Sustainable Finance Disclosure Regulation – SFDR).