13.06.2022
Scope Rating 2022: rated AA (AMR) – KanAm Grund Group remains among the leaders in the Asset Manager Real Estate segment
- Scope attests KanAm Grund Group once again a very high level of quality and expertise in real estate asset management
- The real estate asset manager KanAm Grund Group offers very high expertise in transaction and asset management for retail and institutional investors
Scope Analysis GmbH has affirmed the rating of KanAm Grund Group for asset management in the real estate segment at AAAMR. The renowned rating agency confirms the company’s very high level of quality and expertise in real estate asset management. KanAm Grund Group is once again in the top group of real estate asset managers.
In the analysis on which the Scope rating was based, KanAm Grund Group’s very high transaction and asset management expertise in the office markets of Western European metropolitan areas – especially Paris and London – as well as in Germany and North America was one of the elements on which it scored highest. Exceptional growth in assets under management (from EUR 3.8 billion in 2018 to EUR 6.6 billion in 2021), outstanding sector expertise, above-average length of service and stable management were also cited as reasons for the very good rating.
The comprehensive sustainability management of KanAm Grund Group has been successfully integrated into the operating processes of the company. Development and implementation of sustainability goals are supported by a 40-strong Sustainability team.
The result is also boosted by the positive performance of the LEADING CITIES INVEST. Launched in July 2013, the open-ended retail real estate fund is among the best European performers over one, three and five years. With the Scope rating of a (AIF), the investment fund remains within the highest grade of commercial funds for retail investors and is one of the highest rated real estate portfolios. The fund scored most highly for the very good location quality of the real estate and the low risk from tenancy agreements with sole tenants. The age and size structure of the properties also scored highly. The properties in the fund are largely of recent stock and very fungible, according to Scope.
The real estate acquired for the LEADING CITIES INVEST fund has increased the proportion of public-sector tenants at fund level to around 38 as at December 31, 2021. This was also seen as a positive factor by Scope owing to the lower default risk.
KanAm Grund Group consistently pursues its growth strategy
Over the last around 22 years, KanAm Grund Group has already proved itself to be an innovative market participant in many ways. Among other things, it was the first private – and thus independent – real estate asset management company in Germany. LEADING CITIES INVEST was the first open-ended real estate fund to be initiated under the new regulatory measures of the German Investment Code (Kapitalanlagegesetzbuch – KAGB). Additionally, it works with the cash call strategy, which was developed to manage capital inflows to a large extent in such a way that funds are available when there is a property to be acquired. KanAm Grund Group has developed from a German independent company to a global real estate expert. Own branch offices and networks in other European countries and the USA provide a successful platform for offering investors real estate investments and services with different risk profiles from ‘core’ to project developments in Europe and North America. Both retail investors and institutional investors benefit from the long-standing expertise of the Group. The current range of services includes nine specialized institutional investment funds and twelve asset management mandates. From Scope’s perspective, KanAm Grund Group consistently continues on its growth trajectory. The affirmation reflects the real estate asset manager’s very high expertise in transaction and asset management for retail and institutional investors with a focus on the German market. Guided by Strategy 2025, KanAm Grund Group is pursuing further expansion and growth as an international real estate company. In addition to increasing efficiency by adapting structures and processes, the company also plans to further develop the necessary skills. Hence, branch offices have been opened in London, Madrid and Dublin, the Investment and Asset Management Germany and Investment and Asset Management Europe divisions have been formed and the Development department established.
In addition, automated operating processes and digital transformation are among our focus topics. Two steering committees – Digital Transformation and Sustainability – have been formed to tackle these issues.
About Scope Group
With more than 200 employees, the Scope Group is the largest European provider of ratings, research and analysis. For more than 20 years the analysts at Scope have been awarding ratings to investment funds – currently more than 6,000 in Germany. The Scope rating of open-ended real estate funds reflects the return and risk aspects of an investment fund. This involves an evaluation of all relevant risk drivers and a detailed analysis of real estate portfolios. The rating scale ranges from CAMR (does not meet institutional standards) to AAAAMR. The rating enables systematic comparison of thematically similar investment funds.