14.01.2020

LEADING CITIES INVEST doubles volume and increases performance in 2019

  • Investment result of 3.4 percent p.a. as of 31 December 2019
  • New markets in Poland, Finland, Switzerland, Spain and Ireland opened up
  • Meanwhile 30 individual properties at 22 locations in 9 countries

2019 proved to be a very successful year for the LEADING CITIES INVEST. The KanAm Grund Group’s open-end real estate fund was able to increase significantly in volume and improve its solid performance again to 3.4 percent p.a. as of 31 December 2019. Property assets last year increased by nearly 114 percent to almost 600 million euros. Even though cash inflow was highly regulated by the CashCall/CashSTOP principle, the fund, whose investment result increased to 3.4 percent p.a. as of 31 December 2019, was opened up to around 250 million euros worth of new moneys from investors. The 14 transactions completed in 2019 included the acquisition of 12 objects and the sale of a further two properties. 

The fund management also managed to open up the new markets of Finland, Poland, Switzerland, Spain and Ireland for LEADING CITIES INVEST in the past year. The real estate portfolio grew to 30 individual properties at 22 locations in 9 countries. Regionally, the open-ended real estate fund is now present across Europe in selected cities with a future, from Helsinki in Finland to Barcelona in Spain, from Dublin in Ireland to Warsaw in Poland (see map graphic).

The real estate portfolio of the LEADING CITIES INVEST is notable for its extremely broad diversification, ranging from offices, industry/logistics and retail/gastronomy to the hotel trade and leisure facilities, and with an occupancy rate of 97.8 percent the portfolio can be considered fully let. Together with the striking level of dynamism associated with transactions, a high occupancy rate is a clear indication of the profitability of the fund.

Due to the CashCall / CashSTOP principle and the completed transactions, the liquidity ratio of the open-ended real estate fund was reduced to 10.7 percent in 2019 as of 31 December. This largely avoids negative effects from investing liquidity. The debt financing ratio is also low at 18.4 percent.

Since transforming its energy supply to ensure sustainability in 2019, the LEADING CITIES INVEST has already been able to reduce CO2 emissions by 1,821 tonnes. In the current real estate fund rating of the Scope rating agency, the excellent quality of LEADING CITIES INVEST was distinguished with the third consecutive awarding of an a+AIF rating, and the asset management rating of the KanAm Grund Group was raised to AA-AMR.


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