With its “Strategy 2030”, the KanAm Grund Group laid the foundations last year for being well positioned in the long term. As part of this strategy, the internationally active real estate specialist is focusing specifically on its core competencies for the benefit of its customers, which currently consist of 85% institutional investors and 15% private customers. Thanks to its conservative and forward-looking corporate policy, Europe's experienced fund and asset manager with sustainability expertise can, despite the challenging market environment, draw a positive conclusion for 2024 -and continues to look positively to the future.
Olivier Catusse, CEO and Managing Partner of the KanAm Grund Group, says: “In the area of asset management, our focus is on improving property quality and letting performance. Last year, we were able to let or extend existing leases for more than 133,000 square meters of rental space for an annual rent of over EUR 47 million. We are very satisfied with this result, especially as we were able to significantly improve on the letting performance of the two previous years. Through targeted asset management and sustainability activities, we were also able to increase the energy efficiency of numerous properties, thereby laying an important foundation for increasing rental income. Specifically, this has led to rental increases of 20% in some cases, and even 33% in others. The launch of a closed-end limited investment partnership in 2024 - as another attractive investment product for institutional investors - was another component of Strategy 2030. This is clearly aimed at growth with new products and at the same time focuses on the satisfaction of our investors.”
As a result, the KanAm Grund Group is focusing on expanding its existing expertise and extending its product range to include properties with public-sector tenants. One example of this is the completion of a significant and sustainable logistics project with a long-term lease. As a result, the company is also planning to increase the transaction volume from around EUR 400 million in 2024.
Government tenants, especially public authorities, are characterized by their extraordinary stability and reliability. On the one hand, they are subject to virtually no default risk and, on the other, they conclude rental agreements with above-average lease terms.
Pan-European real estate platform with an international investor base
As a German company with a pan-European real estate platform with offices in Frankfurt am Main, Luxembourg, London, Madrid, Paris and Atlanta, the KanAm Grund Group's investor base includes both German and foreign investors.
The investment focus is currently on office, logistics and development properties in Germany and Europe. In these markets, the real estate expert has excellent access to attractive properties through its local management. The KanAm Grund Group's local presence in cities such as Paris, London and Madrid plays a key role in the implementation of asset management activities and letting processes. This is where extensive knowledge of the local real estate market, current demand trends and market conditions comes into play.
Successful finalization of two project developments as evidence of development expertise
With development expertise derived from a project volume of around EUR 8 billion, the KanAm Grund Group places great importance on the targeted and success-oriented implementation of its projects in all phases of the development and realization processes. Last year, the KanAm Grund Group's “Development Germany” team successfully finalized two development projects in Munich and Frankfurt. Further developments in Germany and Europe are currently being implemented.
Many years of sustainability expertise and comprehensive ESG services for institutional investors
The KanAm Grund Group is one of the real estate asset managers that has built up special sustainability expertise in recent years. In addition, the real estate specialist is a member of leading sustainability associations such as UN PRI, GRESB and the U.S. Green Building Council. The individual properties are certified in accordance with international sustainability standards such as BREEAM, LEED, DGNB and HQE. Investors also benefit from the company's many years of sustainability expertise. As part of its “Green Real Estate Solutions” range of services, the KanAm Grund Group offers innovative and 360-degree comprehensive sustainability services for institutional investors.
As a committed market participant in the real estate industry, the KanAm Grund Group also attaches particular importance to promoting transparent reporting and ensuring the disclosure of its ESG key figures and progress. Its commitment to sustainability and transparency is underscored by a forward-looking approach that enabled the company to take partial account of the CSRD requirements in its first sustainability report last year, although the legal obligation to do so will not apply until the 2026 fiscal year.
Outlook and targets
A normalization on the markets is dependent on further interest rate cuts and and is expected by the KanAm Grund Group to extend over the current calendar year. Against this backdrop, the real estate specialist is planning targeted investments in existing assets and the selective acquisition of real estate investments for institutional investors in 2025. The segments of re-development office and development are to be further expanded, as is logistics. Major projects of these types of use that are already under construction are about to be finalized. In addition, new equity sources in Germany and abroad are being examined.
The KanAm Grund Group intends to build on last year's leasing successes and also continue to increase the attractiveness of individual properties for tenants and buyers through targeted asset management and repositioning measures as well as sustainability activities.