15.07.2021

LEADING CITIES INVEST sells in Munich East

  • LEADING CITIES INVEST seized the sales opportunity after only one and a half years
  • Property does not meet the fund's future ESG standards 
  • Scope: Best commercial property portfolio - a return above the average of the peer group can also be expected in 2021

LEADING CITIES INVEST has successfully sold the Kastenbauerstraße 2-6 property in Munich East. The mixed-use property in Munich-Zamdorf is located on a plot of 18,805 square meters near the exhibition center and was only included in the fund one and a half years ago. The portfolio of LEADING CITIES INVEST, which is still in the growth phase, is regularly checked for its optimal orientation. In this growth phase, too, it is important to use market opportunities to the benefit of investors, as they are now offered by the Kastenbauerstraße property. The property was also sold as we believe it will not meet the future sustainability requirements of LEADING CITIES INVEST. The parties agreed not to disclose the price.
 
The LEADING CITIES INVEST is mainly invested in office buildings. After the sale in Munich, the real estate portfolio of LEADING CITIES INVEST is spread into 34 properties at 25 locations in ten countries in Europe and the USA. According to the current assessment of the independent rating agency Scope, LEADING CITIES INVEST - as in the previous year - has the best real estate portfolio within the commercial real estate fund. In contrast to the industry average, the LEADING CITIES INVEST was even able to slightly improve the valuation of its real estate portfolio compared to the previous year, according to Scope. This makes the fund one of only four open-ended real estate funds that were rated with the grade a + (AIF). Due to the existing portfolio allocation, Scope expects a return above the average of the peer group for the LEADING CITIES INVEST in 2021 as well. Scope upgraded the asset management rating of the KanAm Grund Group in the real estate segment from AA- (AMR) to AA (AMR). The coordination process with the supervisory authority BaFin to classify the LEADING CITIES INVEST as a fund with a dedicated ESG strategy according to Article 8 is in the final stages.
 
As part of the ongoing asset management, the Munich property in Kastenbauerstraße was converted to green electricity and green heat in 2020, following the fund strategy. These measures significantly improved the CO2 emissions in the building. Nevertheless, further maintenance measures would have to be implemented in the building within the next few years to meet the sustainability requirements of the LEADING CITIES INVEST.

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