A N N U A L R E P O R T as of September 30_ 2009
Document Sample
O PE N - E N D E D R E A L ES TAT E F U N D FO R I N S T I T U T I O N A L I N V E S TO R S
A N N U A L R E P O R T
as of September 30, 2009
KanAm Grund
Spezialfondsgesellschaft mbH
PULSAR:
New acquisition
in a top downtown
location
KanAm SPEZIAL grundinvest Fonds
has further expanded its presence
on Europe’s largest office property
market with its acquisition of the
PULSAR office and retail building
in Paris. A key advantage offered by
the recently modernized property is
its location in the French city’s central
business district. The Gare Saint-
Lazare, the second most important
train station in France, is situated in
the immediate vicinity. The location’s
heavy footfall makes the building
attractive for retailers and catering
outlets, among others. The main
retail tenant is Starbucks Coffee
France S.A.S.
Annual Report as of September 30, 2009 .................................... At a Glance
As of September 30, 2009 As of September 30, 2008
Fund assets EUR 416,053,728.73 EUR 352,709,543.38
Total real estate assets EUR 545,068,150.77 EUR 473,470,017.45
thereof held directly EUR 521,090,157.33 EUR 449,492,024.01
thereof held via real estate companies EUR 23,977,993.44 EUR 23,977,993.44
Number of properties 13 10
thereof held directly 12 9
thereof held via real estate companies 1 1
Property acquisitions 2 2
thereof held directly 2 2
Transfer of risks and rewards of ownership for properties
under prior-year purchase obligations 1 1
thereof for direct acquisitions 1 1
Purchase obligations for properties (no transfer
of risks and rewards of ownership) 0 1
thereof for direct acquisitions 0 1
Foreign holdings* 100% 100%
Cash inflow EUR 62,339,461.40 EUR 139,644,295.57
Investment performance p.a.1) 5.0% 6.0%
Investment performance over 4 years1) 25.3% –
Tax-free portion of the distribution2) 79.6% 62.7%
Leased rate3) 100% 100%
Liquidity ratio 21.7% 18.7%
Total expense ratio (TER)4)
excluding performance-based remuneration 0.75% 0.96%
including performance-based remuneration 0.75% 0.96%
Units in circulation 3,751,788 3,185,953
Unit value EUR 110.89 EUR 110.70
Redemption price EUR 106.45 EUR 106.27
Distribution per unit EUR 5.15 EUR 5.15
Date of distribution December 18, 2009 December 19, 2008
* Foreign holdings comprise all properties outside of Germany.
1)
Calculated according to the BVI method. Basis of calculation: unit value (excluding redemption discount); distribution reinvested.
2)
Information for units held as business assets. Tax treatment depends on the investor‘s circumstances and may change in the future.
3)
Calculation based on gross target rental income.
4)
In accordance with section 12(2) of the Special Fund Rules, a performance fee is charged for returns in excess of 7.0% p.a.
KanAm Spezial grundinvest Fonds
WKN: A0CARS
ISIN: DE000A0CARS0
Annual Report
KanAm SPEZIAL grundinvest Fonds
as of September 30, 2009
5.0%* p.a.
ONEYEAR PERFORMANCE
AS OF SEPTEMBER 30, 2009
25.3%* FOURYEAR PERFORMANCE
AS OF SEPTEMBER 30, 2009
31.4%* PERFORMANCE SINCE LAUNCH
AS OF SEPTEMBER 30, 2009
KanAm S pezial grundinvest Fonds, which was launched in
J
anuary 2005 and is tailored to the wishes of institutional investors,
again achieved an aboveaverage investment performance of
5.0%* p.a. This means that it continues to be one of the leading
products of its kind in its fifth fiscal year.
This Annual Report must be provided to investors in KanAm Spezial grund‑
invest Fonds units together with the current Sales Prospectus. If more than
eight months have elapsed since the reporting date of this Annual Report,
investors must also be provided with the most recent semi-annual report.
* Calculated according to the BVI method. Basis of calculation: unit value (excluding redemption discount); distribu
tion reinvested. The investment performance over the fouryear period ended September 30, 2009 amounted to
25.3%.
Annual Report as of September 30, 2009 .................................... Contents
IN THE YEAR UNDER REVIEW, KanAm S pezial grundinvest Fonds’
MANAGEMENT INCREASED THE FUND’S PRESENCE IN TRADITIONAL
LOCATIONS SUCH AS PARIS AS WELL AS INVESTING IN PROPERTIES
IN OTHER ECONOMICALLY ATTRACTIVE LOCATIONS. THE FUND
CONTINUES TO FOCUS ON LOCATIONS IN EUROZONE COUNTRIES.
20
15
10
5
0
– 5
– 10
2001 2002 2003 2004 2005 2006 2007 2008 3. Q.
2009
53 Paris 14 Market Analysis 44 Rotterdam
Fund Management Report Background
[04] Fund Management Report [10] Review: Five years of KanAm Spezial grundinvest Fonds
[14] Market Analysis [36] Location analysis: The Paris office real estate market
[24] Investor Structure [38] Location analysis: The Zurich hotel market
[26] Real Estate Portfolio Structure [40] Location analysis: Lille as a financial center
[28] Loans and Exchange Rate Risks
[30] Leasing and Tenant Creditworthiness
[32] New Acquisitions
[42] Portfolio Properties
[54] Outlook
The “Investmentgesetz” (InvG – German Investment Act) was amended by the “Investmentänderungsgesetz” (InvÄndG – Act Amending the German
Investment Act), which entered into force on December 28, 2007. We have opted to make use of the transitional provision pursuant to section 145(2)
of the InvG and will apply the version of the Act in force before December 28, 2007 to the KanAm S pezial grundinvest Fonds real estate investment
fund until the Fund Rules are revised. Accordingly, we have prepared the present Annual Report in accordance with the provisions of section 44(1) in
conjunction with section 79 of the InvG in the version valid until December 27, 2007.
KanAm Spezial grundinvest Fonds
51 Amsterdam
32 New Acquisitions 38 Zurich
Zahlen und Fakten
Facts and Figures
[57] Return, Valuation, and Leasing [87] Information on Bases of Taxation to be
[62] Statement of Changes in Fund Assets Disclosed to Investors
[64] Statement of Assets [90] Interim Profits Subject to Income Tax
[68] Property Record [91] Gains from Real Estate and Equities
[72] Record of Acquisitions [92] Certification in Accordance with Section 5(1)
[73] Hedging Transactions and Liquidity Portfolio Sentence 1 No. 3 of the InvStG
[74] Income Statement [93] Income Tax Treatment of the Distribution, Income
[76] Calculation of the Distribution Subject to Investment Income Tax, Investment
[77] Auditors’ Report Performance
[78] Tax Information [94] Executive Bodies
KanAm Spezial grundinvest Fonds
Annual Report as of September 30, 2009 .................................... Fund Management Report
THE FUND’S MANAGEMENT IS CONTINUING ITS SELECTIVE
INVESTMENT STRATEGY. THE EFFECTIVENESS OF THIS STRATEGY
WAS AGAIN CONFIRMED BY AN ABOVE-AVERAGE INVESTMENT PER-
FORMANCE IN A FAR MORE CHALLENGING MARKET ENVIRONMENT.
Hans-Joachim Kleinert,
Olivier Catusse,
Carmen Reschke,
Matti Kreutzer (from left to right)
Fund Management Report
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Dear Investors: hitting the market. However, there has
been no sign of such a development
It has been five years since KanAm in recent months. On the contrary:
Spezial grundinvest Fonds was Most investors are looking for new
launched. In this Annual Report, we ways to retain properties, for example
would like to revisit its development using mezzanine financing. This is
and highlights with you. Quality and because the vast majority of investors
5�0% p�a�* ensuring and enhancing sustainable are not willing to sell properties at
The fund again recorded an income through strategic invest- present, as this type of investment
above -average investment
per formance in what was a ments – these are the features that backed by material assets is precisely
difficult market environment.
continue to drive KanAm S p e z i a l what is needed to ensure stability in
Consistency and stability grundinvest Fonds’ success in its fifth times of crisis. In par ticular, the
fiscal year. medium-sized, high-quality, prime-
location properties that make up the
Until recently, many observers still bulk of KanAm S pezial grundinvest
subsc ribe d to the view that the Fonds’ portfolio are rarely put on the
economic crisis would lead to a glut market.
of attractive commercial properties
KanAm Spezial grundinvest Fonds
The situation has been stabilizing Despite this extremely challenging
since late summer 2009 and forecasts e c o n o m i c e nv i r o n m e n t , K a n A m
are now cautiously optimistic for the Spezial grundinvest Fonds succeeded
first time in several months. Even in in further strengthening its position. Quality
recent months, however, the fund’s We make no compromises as
regards quality: Every potential
management has remained true to its Fund assets increased by approxi- acquisition is examined in detail.
investment philosophy in order to mately EUR 63.4 million (18%) to
Thoroughness
maintain the fund’s successful track approximately EUR 416 million during
record. the period under review from Octo-
ber 1, 2008, to September 30, 2009.
We are therefore delighted to report During the same period, real estate
another encouraging investment per- assets increased by approximately
formance of 5.0% p.a.* at the end of EUR 71.6 million (15%) to roughly
the fiscal year as of September 30, EUR 545 million.
2009. This is in spite of the fact that
the global markets in 2008 and 2009
* Calculated according to the BVI method. Basis of
were overshadowed by the financial calculation: unit value (excluding redemption
iscount); distribution reinvested. The investment
d
c risis a nd the at te nda nt dr a stic
performance over the four-year period ended
economic slowdown. eptember 30, 2009 was 25.3%.
S
La Madeleine, Lille [Property Record page 68 / no. 3]
KanAm Spezial grundinvest Fonds
Annual Report as of September 30, 2009 .................................... Fund Management Report
A striking historical facade: The PULSAR office and retail property in Paris [Property Record page 68 / no. 4]
KanAm Spezial grundinvest Fonds
FAC T S
Investment performance
as of September 30, 2009:
5.0% p.a.*
Fund assets as of Septem-
ber 30, 2009: approximately
EUR 416 million
Real estate assets as of
September 30, 2009: ap-
proximately EUR 545 million
Portfolio optimized through
new type of use
Increased presence in Paris
A modern interior: An office floor in the PULSAR building
The fund’s management continued to provided in the Semi-Annual Report
expand the portfolio, diversifying it as of March 31, 2009. The second was
with new locations and types of use the PULSAR building in the central
while of course maintaining a selec- business district of Paris, a report on
tive, prudent approach. Decisions in which will be given on the following
favor of or against a property do not pages. The PULSAR office and retail
depend on market conditions alone. property is particularly attractive due
Particularly in a challenging economic to its excellent mix of tenants and
environment with tougher markets, it sectors. The main tenants are Star-
is essential to remain consistent to bucks Coffee France S.A.S. and con-
the quality criteria that have applied
ever since the fund was launched.
One of the most important of these is
Top Location: Paris
the leasing situation. The value of sulting firm Krauthammer Internation- KanAm S pezial grundinvest Fonds
long-term leases with creditworthy al S.A. The leases run until 2019 in the acquired an office and retail building
in a prime location with a solid mix of
tenants is particularly evident in times case of Starbucks and until 2017 for tenants.
of economic crisis. In the fiscal year, the office space. New acquisition
the Holiday Inn Zurich Messe hotel
in Europe’s top
was added to KanAm S pezial grund These new acquisitions allowed the
location
invest Fonds. The fund’s management fund’s management to increase its
also acquired two properties in fiscal presence in France while fur ther
year 2008/2009 with a view to diversify- diversifying the portfolio by adding a
* Calculated according to the BVI method. Basis
ing the real estate portfolio. The first of hotel property. However, the main
of calculation: unit value (excluding redemption
discount); distribution reinvested. As of September
these was the La Madeleine office fo cu s of future inve stme nts will
30, 2009, the investment performance over four
building in Lille, details of which were continue to be on office properties. years was 25.3%.
KanAm Spezial grundinvest Fonds
Annual Report as of September 30, 2009 .................................... Fund Management Report
With the three new acquisitions in Another key factor in the constant
fiscal year 2008/2009, we expanded development of KanAm Spezial grund-
our portfolio while adhering to our invest Fonds that we mentioned ear-
tried-and-tested principles of acquir- lier is that we have enjoyed a 100%
Strong credit quality
l e a s e d r ate s i n c e th e f u n d wa s
launched. Thanks to long-term leases
and creditworthy tenants from a broad
cross section of sectors – and to a
KanAm S pezial grundinvest Fonds’
properties are leased for the long ing medium-sized properties in mar- high proportion of public sector or
term to financially sound partners. kets offering potential for the future. near-public sector tenants with virtu-
ally zero default risk – we have been
Tenant default risk able to offer our investors a stable in-
reduced further vestment performance that is above
the average for comparable open-
ended real estate funds for the past
five years.
Development of KanAm Spezial grundinvest Fonds
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2009 in 2008 in 2007 in 2006 in
Launch date: January 25, 2005 EUR million EUR million EUR million EUR million
Properties 521.1 449.5 291.8 242.1
Equity interests in real estate companies 16.3 16.5 16.3 14.1
Bank deposits 90.3 66.0 20.0 26.4
Other assets 12.6 14.1 9.7 10.8
Less liabilities and provisions 224.2 193.4 129.4 127.4
Fund assets 416.1 352.7 208.4 166.0
Units in circulation 3,751,788 3,185,953 1,901,912 1,534,212
Unit value in EUR 110.89 110.70 109.56 108.22
Redemption price in EUR 106.45 106.27 105.18 103.89
Distribution per unit in EUR 5.15 5.15 5.15 5.00
Date of distribution Dec. 18, 2009 Dec. 19, 2008 Dec. 18, 2007 Dec. 20, 2006
Investment performance p.a* 5.0% 6.0% 6.1% 6.1%
Conference room: * Calculated according to the BVI method. Basis of calculation: unit value (excluding redemption discount); distribution reinvested.
Holiday Inn Zurich Messe As of September 30, 2009, the investment performance over four years was 25.3%.
KanAm Spezial grundinvest Fonds
Ending the working day on a relaxed note: The bar at the Holiday Inn Zurich Messe trade fair hotel [Property Record page 70 / no. 12]
Carefully selected commercial prop- Five years since the launch of KanAm
erties in prime locations remain high- Spezial grundinvest Fonds, it is safe to
ly-demanded investments. This is be- say that our fund and its underlying
cause the inflationary pressures that
are expected by many economists in
strategy have proven their worth dur-
ing a variety of economic cycles. This
Tangible
the coming months and years clearly also extends to the crisis-ridden fiscal assets
demonstrate the advantages of tangi- year 2008/2009, on which we report High-quality properties contin-
ble assets such as real estate. Small on the following pages. ue to be attractive investment
options, especially where the
wonder, then, that institutional inves- risk of inflation is rising.
tors are continuing to increase their We hope that you will find our report a
Commercial properties
exposure to real estate investments. stimulating and interesting read and in demand
thank you most sincerely for the confi-
dence that you have shown in us.
KanAm Spezial grundinvest Fonds
Annual Report as of September 30, 2009 .................................... Fund Management Report
EUR 86.7 million
5
Fund assets
years
September 30, 2005
4.9%* (7.2%** p.a.)
Investment
performance
September 30, 2005
(short fiscal year)
KanAm Spezial grundinvest Fonds –
The highlights at a glance
September 30, 2005
Short fiscal year 2005 Fiscal year 2005/2006
AVIVA C, Margriet Nieuwe Cloche d’Or S.A. Le Lumion,
Paris Toren, Vaart, real estate Geneva
Amsterdam Amsterdam company,
Luxembourg
2005 KanAm Grund Spezialfonds The fund’s real estate assets at the
gesellschaft mbH, which was founded reporting date September 30, 2005
in Frankfurt am Main in 2003, launches total EUR 113.5 million. In less than nine
openended real estate fund KanAm months, the fund achieves an invest
Spezial grundinvest Fonds. Unlike the ment performance of 4.9%* as of Sep
two funds operated by sister company tember 30, 2005, the equivalent of an
KanAm Grund Kapitalanlagegesell annualized return of 7.2% p.a.**
schaft mbH (KanAm grundinvest Fonds
and KanAm US-grundinvest Fonds), 2005/2006 In its first full fiscal year
KanAm Spezial grundinvest Fonds is not from October 1, 2005, to September 30,
distributed to the general public. In 2006, KanAm Spezial grundinvest Fonds
stead, it is designed to meet the spe acquires a stake in real estate company With an investment performance of
cific wishes of institutional investors. Cloche d’Or S.A. The fund’s firstever 6.1% p.a.* as of September 30, 2006,
This tailormade concept met with keen property in Switzerland – and therefore the earnings generated by KanAm
interest from the outset. The investors its firstever property outside the euro Spezial grundinvest Fonds are well
are for the most part banks, pension zone – is added to the portfolio with the above those of comparable funds.
funds, foundations, and funds of acquisition of the highquality Le Lu
funds. mion office building in the immediate vi 2006/2007 The fund’s manage
cinity of Geneva International Airport. In ment diversifies the fund in fiscal year
In 2005, the fund’s management March 2006, the fund’s management 2006/2007, adding a property outside
acquires the AVIVA C office building acquires the Zilveren Toren property in the traditional European markets: In
near Paris and the Margriet Toren and The Hague. May 2007, the Helex Building B in
Nieuwe Vaart properties in Amsterdam. Athens is acquired. The Greek capital
As of September 30, 2006, fund assets is regarded as a growth market. The
The short fiscal year from January 25 to increase to EUR 166 million. Real estate property in question is based in the
September 30, 2005 sees a net cash in assets increase to EUR 263 million.
flow into the fund of EUR 84.4 million.
10 KanAm Spezial grundinvest Fonds
EUR 166 million EUR 208 million
Fund assets Fund assets
September 30, 2006 September 30, 2007
6.1%* p.a. 6.1%* p.a.
Investment Investment
performance performance
September 30, 2006 September 30, 2007
September 30, 2006 September 30, 2007
Fiscal year 2006/2007 Fiscal year 2007/2008
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Zilveren Helex Building B, Le Dion
Toren, Athens P
The Hague
city’s new financial center, where its in the city center of Saint-Denis, near EUR 473 million. Despite a difficult
neighbors include the Athens Stock the French capital, Paris. The proper- economic environment brought about
Exchange and the Bank of Greece. ty is leased to a public sector social by the onset of the financial and eco-
insurance institution. In July 2008, the nomic crisis, KanAm Spezial grundin-
Fund assets exceed the EUR 200 mil- fund buys the Ruby Point property in vest Fonds records an investment per-
lion mark in fiscal year 2006/2007, Amsterdam’s Zuidoost submarket. f o r m a n c e o f 6 . 0% p . a .* a s o f
amounting to over EUR 208 million as The Laan op Zuid office building in September 30, 2008.
of September 30, 2007. The fund’s in- Rotterdam, a certified green building
vestment performance is 6.1% p.a.* that is regarded as being exception-
as of September 30, 2007, once again ally sustainable, is added to the fund
well above the average recorded by portfolio on completion.
comparable funds.
Fund assets increase significantly to
2 0 0 7/ 2 0 0 8 I n f i s c a l y e a r just under EUR 353 million as of Sep-
2007/2008, the fund’s management tember 30, 2008. On the same report-
acquires the Le Dionys office building ing date, real estate assets amount to
KanAm Spezial grundinvest Fonds 11
EUR 353 million EUR 416 million
Fund assets Fund assets
September 30, 2008 September 30, 2009
6.0%* p.a. 5.0%* p.a.
Investment Investment
performance performance
September 30, 2008 September 30, 2009
September 30, 2008 September 30, 2009
Fiscal year 2008/2009
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
nys, Ruby Point, Laan op Zuid, La Madeleine, Holiday Inn PULSAR,
Paris Amsterdam Rotterdam Lille Zurich Messe, Paris
Zurich
2 0 0 8 / 2 0 0 9 I n f i s c a l ye a r property, an office and retail build- Fund assets increase to approxi-
2008/2009, the fund’s management ing in an attractive location in Par- mately EUR 416 million at the re-
continues its systematic expansion is with excellent transpor tation por ting date of Se pte mbe r 30,
of the portfolio. In October 2008, links. The of fice and retail units 2009.
it acquires La Madeleine, a high- are leased to tenants from a vari-
quality office building in the French ety of sectors. Proactive leasing KanAm S pezial grundinvest Fonds
city of Lille. In March 2009, the first management also leads to an ex- generates an above -average
hotel property is transferred to the tension of the Amsterdam Traffic investment performance of 5.0%
fund portfolio: The Holiday Inn Zu- and Transport Authority’s lease for p.a.* for its investors as of Sep-
rich Me s se with its compelling the Nieuwe Vaart office building in tember 30, 2009.
concept is located in the direct vi- A msterdam. This maintains the
cinity of the Swiss city’s trade fair, high proportion of public sector or * Calculated according to the BVI method. Basis
roughly halfway between Zurich near-public sector tenants. of calculation: unit value (excluding redemption
discount); distribution reinvested.
city center and Zurich-Kloten In- ** Short fiscal year from January 25, 2005, to Sep-
tember 30, 2005; annualized return as of Septem-
ternational Airport. This is followed
ber 30, 2005: 7.2%.
by the acquisition of the PULSAR Transfer of risks and rewards of ownership
KanAm Spezial grundinvest Fonds 12
KanAm Spezial grundinvest Fonds –
The facts at a glance
5.0%
THE FISCAL YEAR AS OF SEPTEMBER 30, 2009
CLOSES WITH A ONE-YEAR INVESTMENT PERFOR-
p.a.* MANCE OF 5.0%
416
MILLION
FUND ASSETS AS OF THE REPORTING DATE
EUR OF SEPTEMBER 30, 2009
100% FULLY LEASED: THIS ENSURES STABILITY AND VAL-
UE PRESERVATION.
25.3% WITH AN INVESTMENT PERFORMANCE OVER A FOUR-
YEAR PERIOD ENDED SEPTEMBER 30, 2009 OF 25.3%
Portfolio THROUGH NEW TYPE OF USE AND
DiVErsifiCatioN NEW LOCATIONS
Paris INCREASED PRESENCE IN PARIS
according to the BVI method. Basis of calculation: unit value (excluding redemption discount); distribution reinvested.
* Calculated
As of September 30, 2009, the investment performance over four years was 25.3%.
KanAm Spezial grundinvest Fonds 13
Annual Report as of September 30, 2009 .................................... Fund Management Report
“Fear has turned to hope. Thankfully, we can see light at the end
of the tunnel […] and the growth engine seems to be starting up
again. [...] I contend that this was no mere accident. It was not
just good luck. Rather, it came from the bold decisions taken by
policymakers the world over.”
Dominique Strauss-Kahn, Managing Director, International Monetary Fund, October 23, 2009
Market Analysis
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
The economic environment However, the IMF stresses that the
economy is recovering at a slow pace
The outlook for the global economy and that economic activity will falling
has improved noticeably with every well short of pre-crisis levels. Labor
month since spring 2009. In line with markets continue to be depressed by
this, the International Monetary Fund extensive job losses. Up until the sec-
(IMF) raised its economic forecasts for ond quarter of 2009, consumer spend-
many countries again in its recent ing in Europe and the USA was weak or
autumn forecast. Although 2009 will even declining, investments were neg-
FAC T S
remain the year of the worldwide re- ative, and the only boost for the econ-
cession, the economy will shrink by on- omy came in the form of massive gov-
Economic recovery programs
ly 1.1% – less than expected by the IMF ernment economic stimulus packages.
are proving successful.
in the spring of this year. In 2010, glob- The active role played by the state can-
The US economy is growing
al gross domestic product is expected not be faulted in principle, as the de-
again.
to increase again by 3.1%. The im- clared aim of the economic stimulus
The economic climate in
proved outlook for the global economy packages was to stop the free fall in
Europe has improved.
has rekindled optimism and confidence the global economy. As can be seen
High unemployment
among many economic players. This from current forecasts by leading
Rising national debts
can also be seen from the price rally on economic institutes, the governments
Increasing risk of inflation
the financial markets. For instance, the succeeded in their efforts. In the com-
price of crude oil climbed from around ing months, the public sector will there-
USD 40 per barrel at the beginning of fore continue to stimulate domestic
IMPROVED ECONOMIC the year to over USD 77 at the end of demand significantly, and so contribute
October 2009, while stock markets al- to the economic recovery.
CLIMATE THANKS TO
so rallied sharply between March and
MASSIVE ECONOMIC September 2009. Nevertheless, the million-dollar ques-
STIMULUS PACKAGES tion remains as to how long this fledg-
ling economic recovery can be financed
14 KanAm Spezial grundinvest Fonds
by greater public sector ex- forecast by the European European Commission estimated that
penditure, and whether this Commission, economic out- general government gross debt in the
will have the intended effect put in the eurozone and the eurozone will increase from 66% of
of kick-starting investment, EU is set to pick up again in GDP in 2007 to 84% in 2010. Gross
consumer spending, and ex- the third quarter of 2009. debt in the USA is expected to climb
ports in the coming quar- However, GDP growth rates even further, with the IMF expecting it
Positive
ters. The first positive sig- signal: in the eurozone and the EU to increase from 62% in 2007 to ap-
nals come from the recently GDP can be expected to be lower proximately 94% at the end of 2010.
published GDP figures for in the than in the USA owing to the These higher levels of debt reduce the
the USA in the third quarter USA more moderate use of eco- financial cushion available to govern-
of 2009. These show that, nomic stimulus packages. ments and therefore their ability to re-
unlike in the previous quar- spond flexibly to difficult economic sit-
ter, consumer spending, construction Even though the economic stimulus uations in the future. In addition, the
investment, and exports made a posi- and stabilization measures undertaken increase in debt has come at an ex-
tive contribution to economic output in by governments and central banks tremely awkward time. Over the next
addition to state measures. This im- have had a positive effect in the short few years, governments will already be
proved overall development is attribut- and medium term, it still remains to be faced with rising expenditure and fall-
able not only to government support seen what effects this massive public ing income as a result of demographic
programs, but also to the recovery in spending will have on the economy in change. This will make it all the more
world trade. According to the interim the long term. In its spring forecast, the difficult to repay the massive debts.
Change in real gross domestic product (GDP) growth in selected countries
in %
6
4
2
0
0.7
– 0.7
– 0.8
– 2
– 1.1
– 2.0
– 2.4
– 2.5
– 2.7
– 4
– 3.2
– 4.2
– 4.2
– 4.3
– 4.4
– 4.8
– 6
– 5.3
– 8
– 7.3
– 10
Australia
Brazil
Greece
World
Switzerland
France
Canada
USA
Belgium
Netherlands
Eurozone
Czech Republic
United Kingdom
Luxembourg
Germany
Mexico
2008 2009 2010 2011
Source: International Monetary Fund (IMF), October 2009
The economy is recovering thanks to the massive economic stimulus packages, but the effects of the economic downturn in the
first half of the year mean that 2009 as a whole will still definitely be the year of the global recession. The IMF revised its forecasts
for the decline in global GDP in 2009 from –1.4% to –1.1%. As of 2010, the IMF is predicting a return to economic growth for most
countries. With +1.5% in the USA and +2.1% in Canada, the expectations for North America are better than in the eurozone (+0.3%).
KanAm Spezial grundinvest Fonds 15
Annual Report as of September 30, 2009 .................................... Fund Management Report
Development of take-up and gross domestic product
(GDP) changes in Europe
Aggregate take-up in 15 European office real estate markets*
in thousands of sqm in %
12,000 6
8,000 4
4,000 2
0 0
– 4,000 – 2
– 8,000 – 4
Take-up in thousands of sqm
Annual changes in the eurozone’s real gross domestic product (GDP) in %
– 12,000 – 6
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Q1–Q3
2009
V
* ienna, Brussels, Paris, Frankfurt, Munich, Hamburg, Berlin, Dublin, Amsterdam, Barcelona, Madrid, London and UK M25 (M25 North, South and Thames Valley)
Source: CB Richard Ellis and International Monetary Fund (IMF), October 2009
Because of this, exit strategies are economic growth again, in contrast to of an improvement since May 2009,
currently being developed to help the the previous quarter. In spite of the with a reduction in the number of job
central banks remove the excess positive results in the third and – losses per month. This trend reversal
liquidity from the financial markets according to current projections – in on US labor markets can be attributed
when the economy picks up again and the fourth quarter of 2009, the IMF to two main reasons. The first of these
to enable governments to consolidate expects a 2.7% decline in GDP for the is that the growing optimism and the
their finances. year as a whole. However, its outlook improvement in the financial markets
for 2010 is more upbeat, leading it to have bolstered the job market. The
US economy growing again almost double its growth predictions second is that the first positive effects
for the USA from 0.8% to 1.5%. of the multi-billion dollar economic
With an annualized growth rate of stimulus package introduced by the
3.5%, GDP in the USA rose in Q3 2009 Since the recession officially began in Obama administration are also starting
for the first time in four successive December 2007, unemployment figures to be felt here.
quarters. As expected, government in the USA have increased to a total of
spending made a positive contribution 15.1 million. In September 2009, the In February 2009, US President Obama
to economic growth. Thanks to the unemployment rate in the USA was signed a USD 787 billion stimulus pack-
government-sponsored automobile 9.8%, the highest level since 1984. age. This includes a wide range of
scrappage program – colloquially Most redundancies occurred following measures designed to kick-start the
known as “cash for clunkers” – con- the failure of investment bank Lehman economy, such as tax relief, grants,
sumer spending was also boosted by Brothers, when the situation on the state loans, and increased entitlements
3.4%. Exports and construction invest- financial markets came to a head. More to social benefits. Other projects, such
ment also recorded positive growth than 4 million Americans lost their jobs as the construction of roads and
rates in the third quarter. Changes in between October 2008 and April 2009 schools, are designed to boost US
inventory investment contributed to alone. However, there have been signs economic growth in the long term.
16 KanAm Spezial grundinvest Fonds
However,oftheoverallpackage,only i
ncreasedby0.2%inthethirdquarter
Laan op Zuid, Rotterdam
USD207billionhasbeenpaidoutto of2009,afterhavingshrunkby0.1%in
[Property Record page 68 / no. 9]
date.Everymonth,theUSgovernment the previous quarter. In spite of the
publishesthenumberofjobscreated positive expectations – including for
intheindividualstatesasaresultofthe thefourthquarter–theIMFexpects
economicstimulusmeasures.These GDPtofallby4.2%in2009asawhole.
figuresindicatethatatotalof640,329 Giventhemoreencouragingforecasts
jobshavebeencreatedorretainedin for 2010, the IMF raised its negative
theUSAbetweenFebruaryandOcto-
growthforecastsfortheeurozoneof
ber inclusive with the aid of these –0.3%tothepositivelevelof0.3%.
funds.Thetargetistocreateorretain
atotalof3.5millionjobsinthefirsttwo Unemploymentintheeurozonewasat
yearswiththeseemploymentpromo- 9.7%inSeptember2009,2.8percent-
tionprograms. age points above its last low in July
2007.Thenumberofjobslostwases-
Annualconsumerpriceinflationinthe peciallyhighbetweenSeptember2008
USAwasanegative-1.3%inSeptem- andMay2009.Inthisperiod,theun-
ber2009.Thisdropwasprimarilyat- employmentrateincreasedfrom7.5%
tributabletotheenergyindex,asen- to9.5%.Sincethen,ratesindicatethat
ergycostsfelldramaticallyinthefinal Europeanlabormarketshavesettled
monthsof2008,pushingtheannualin- somewhat. Here, too, the easing
flationratedowntoitscurrentnegative p
rimarilyreflectsthepositiveeffectsof
level.However,energycostshavebeen governmentstabilizationmeasures.
risingagainsincethebeginningofthe
year.Thisindicatesthattheannualin- InSeptember2009,theannualinflation
flationratein2010willbewellabove rateintheeurozonewas–0.3%,well
zeroagain.Atpresent,coreinflation– below the European Central Bank’s
which excludes volatile components t
argetreferencerateof2.0%.However,
such as energy and food – is at thereisnodangeroflastingdeflation
+1.5%. giventhatenergycosts,whicharean
importantcomponentofinflation,have
Improved economic climate in beenrisingagainsincethebeginning
Europe of2009.Previously,energycostsinthe
fourth quarter of 2008 had fallen so
AccordingtoEUCommissarJoaquín dramaticallythattheypushedannual
AlmuniaintheSeptember2009interim inflationtoitscurrentnegativelevel.
forecast,theeconomicclimateinthe However,asofJanuary2010atthelat-
EU and the eurozone has improved est,thiseffectwillnolongerbeinclud-
tangibly compared with the second edinthecalculations,andinflationwill
quarter of 2009. He attributes this starttoriseagain.AsearlyasSeptem-
abovealltotheunparalleledvolumes ber 2009, core inflation – which ex-
ofliquiditypumpedintotheeconomy cludesenergyandfood,components
by the European central banks and that are subject to fluctuation – was
governments.Inaddition,theoutlook +1.2%,onlyslightlybelowtheECBref-
forforeigntradehasimprovedconsid- erencerateof2.0%.
erablyinthecourseof2009.Accord-
ingly, the European Commission
e
stimates that GDP in the eurozone
KanAm Spezial grundinvest Fonds 17
Annual Report as of September 30, 2009 .................................... Fund Management Report
INCREASING VACANCY RATES AND FALLING RENTS ARE INFO
THE EFFECTS OF THE CURRENT ECONOMIC CLIMATE ON
THE REAL ESTATE MARKETS
EU 15 weighted average vacancy rate
in %
10
9
8
7
6
5
4
3
2
1
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2005 2005 2005 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009
EU 15: Weighted average vacancy rate Source: CB Richard Ellis
European office market rent cycles in the third quarter of 2009
Rents in Europe are falling: Properties with long leases currently enable stable rental income.
Accelerated Slow-down in Falling Rents
rental growth rental growth Athens
rents bottom out
Manchester
Lyon Edinburgh Frankfurt
Geneva Copenhagen Zurich
Lisbon
Prague Vienna
Rome
Munich Birmingham
Milan
Paris
Amsterdam
Helsinki Warsaw
Hamburg
Stockholm Moscow
Düsseldorf
Budapest Dublin
Bucharest Brussels
Barcelona
Oslo
Madrid
Berlin London West End
London City
EMEA (Europe, Middle East, Africa Region) office market rent cycles
The markets do not necessarily move along the curve in the same direction and at the same speed.
Source: CB Richard Ellis
18 KanAm Spezial grundinvest Fonds
Office real estate market trends finance. This means in turn that there admirable opportunity to secure long-
has been a sharp drop in the number of term rental space at attractive con-
Needless to say, the current state of representative property sales used as ditions. Accordingly, we also expect
the global economy is also taking its a basis for determining market returns. demand for space in London to contin-
toll on the commercial real estate mar- In Europe alone, the number of individ- ue to increase in the coming quarters.
kets. Demand for rental space is falling ual properties valued at over EUR 50
in virtually all real estate markets, while million that were sold in the first six The level of vacancies is increasing
vacancy levels are rising. Downward months of 2009 fell by 81% compared again on account of the weaker de-
pressure on rents is growing. Owners with the same period in 2007. For in- mand for space across Europe. In the
who need to prolong or renew the leas- stance, only 103 such transactions core markets of the EU 15 countries,
es on their properties in these times were registered by real estate service the average vacancy rate as at the third
are often forced to accept lower rents. provider CB Richard Ellis in the first quarter of 2009 is 8.75%, which is 1.4
Properties with long leases permit half of 2009. This scant data can hard- percentage points higher than in the
stable rental income in the current ly be used as a reliable basis for deter- previous year. Even if vacancy rates
environment, in principle offering pro- mining returns for a large number of can be expected to continue rising in
tection against falling values. On real estate markets. In order to arrive at coming quarters, the future vacancy
account of this, there has been in- approximate quarterly values notwith- risk remains limited due to the moder-
creased demand among investors for standing, some real estate service pro- ate level of construction activity. Con-
properties with long leases, particular- viders determined returns based on sequently, real estate service providers
ly since the turbulent fall of 2008. More their own expertise. Since then, the therefore expect a sharp fall in new
and more risk-averse investors are term “synthetic returns” has been used builds in the next 24 months.
looking once more to good locations to describe the market returns current-
and to properties with strong funda- ly published by real estate service pro- CB Richard Ellis reported that, com-
mental values. “Flight to quality” is the viders. pared with the previous quarter, prime
term used by real estate specialists to rents remained stable in 24 out of a to-
describe this behavior among investors The rental market situation tal of 47 European office real estate
and financial backers. It also explains markets in the third quarter of 2009. By
why real estate market returns in Demand for office space in European contrast, prime rents continued to fall
second-class locations have increased real estate markets is weak as a result in 23 real estate markets. As a result,
at a faster rate than those in top loca- of the economic situation. In the third the EU 15 rental index based on these
tions in the course of the last two years. quarter of 2009, a total of 1.4 million figures declined in the fourth quarter in
However, real estate service providers sqm of office space was leased across a row. However, the 1.3% drop was
have also revised prime yields sharply Europe. This is down a marginal 1% less severe than in the previous quar-
upwards in some cases in the last two quarter-on-quarter, but a substantial ters. Year-on-year, the EU 15 rental in-
years. This was initially due to the irra- 34% on the third quarter of 2008. These dex fell by 10.1%.
tionally low level of prime yields during figures illustrate that, although the level
the peak of the last property boom in of leasing is currently low, it appears to
mid-2007. In some cases, real estate be bottoming out. In certain real estate
market returns at the time were lower markets, there were even indications FAC T S
than returns for risk-free ten-year gov- that demand for space was recovering
ernment bonds. This excessive state of – albeit marginally – in the third quarter. Low demand for space.
affairs was largely corrected at the These markets include London, for First signs of bottoming
beginning of the subprime crisis in the example, where take-up increased by out becoming visible.
third quarter of 2007. Nonetheless, 52% in the second quarter of 2009 and Vacancies are rising.
transaction volumes have fallen steadi- again by 61% in the third quarter. Com- Rents are falling.
ly since the beginning of 2008 owing to pared with mid-2007 levels, rents in Improved outlook
the high level of uncertainty in the world London have declined substantially. as of 2011/2012.
and to the difficulty of obtaining debt For many companies, this presents an
KanAm Spezial grundinvest Fonds 19
Annual Report as of September 30, 2009 .................................... Fund Management Report
Given the economic situation, most Eu- Although falling demand for space is Investment markets for office
ropean real estate markets can expect taking its toll on the US rental markets, real estate
to experience rising vacancies and there is no additional pressure from
falling rents up until the end of 2010. As construction activity in the vast major- According to CB Richard Ellis, trans-
of 2011, a combination of more encour- ity of office real estate markets. Many action volumes in Europe increased by
aging economic forecasts and a construction projects were cancelled 34% to EUR 17.3 billion in the third
marked reduction in the volume of new owing to more difficult financing and to quar ter of 2009. This quar ter-on-
builds will have a stabilizing effect on the weak economic climate. CoStar quarter growth is due in particular to
rental levels, giving rise to new growth estimates that some 127 million sq. ft. the increase in real estate deals in the
potential as of 2011/2012. (11.8 million sqm) of new space will be UK and Germany. The real estate
completed in 2009 and 2010. This service provider estimates that the
According to research firm CoStar, the corresponds to just 1.5% of the current higher level of activity reflects the
average vacancy rate for high-grade total office space – an extremely mod- improved sentiment among investors,
Class A office properties in the USA erate figure. Most of the new space a few of whom now believe that the
was 15.0% in the third quarter of 2009, relates to the two largest US office real real estate markets have bottomed out.
3.6 percentage points higher than the estate markets: New York City and Euphoria notwithstanding, however,
last low at the end of 2007. CoStar Washington, D.C. However, the volume real estate service providers are also
expects the vacancy rate to climb fur- of completions is moderate in relation well aware that the enormous percent-
ther to 17.8% by the end of 2010. This to the size of these two markets. Of the age increase in the third quarter of
is mainly attributable to declining 63 office real estate markets examined, 2009 was primarily due to the extreme-
demand for space owing to the only Charlotte and Miami exhibit a ly low transaction volumes in the first
economic climate. significantly higher level of construc- and second quarter of the year.
tion activity and therefore an additional
Total net take-up – the net change in vacancy risk. US markets also saw a 15% increase in
the volume of space leased – in the the volume of real estate deals in the
USA is negative again in 2009 for the According to CoStar, rents in the USA third quarter of 2009. However, trans-
first time in seven years. In the first have been falling again since the third action volumes for the first nine months
three quarters of 2009, the relevant quarter of 2008. In the third quarter, the of the year amounted to a mere USD 14
figure was –47.0 million sq. ft. (–4.4 mil- average rent in the USA fell by 5.2% billion. By comparison, transaction vol-
lion sqm). By comparison, between year-on-year, or by 6.2% in the case of umes for full-year 2008 were USD 58
2004 and the end of 2008, net take-up Class A properties. To date, the con- billion, while in the previous year, they
in the USA averaged +23.3 million tinuing job losses in the USA are push- were as high as USD 130 billion. Owing
sq. ft. (+2.2 million sqm) per quarter. ing down demand for space and, in to the strained situation among US
turn, putting downward pressure on banks, debt financing volumes contin-
rent levels. Thanks to the improved ue to be very low. The US Federal Re-
economic forecasts as of 2010 and the serve is contributing to the improve-
FAC T S multi-billion dollar economic stimulus ment in the refinancing of commercial
package introduced by the Obama real estate by buying up not only
Low transaction volumes administration, the US labor market government bonds but also mortgage-
for the year as a whole. could stabilize again as soon as mid- backed securities. This is expected to
Slight improvement in 2010, which could have a positive ease the situation again in the USA as
third quarter of 2009. impact on rental trends. well as of 2010 and to boost real estate
Fundamental quality of deals.
properties is decisive.
Expectations of inflation
make real estate invest-
ments more attractive.
20 KanAm Spezial grundinvest Fonds
Ruby Point, Amsterdam
[Property Record page 68 / no. 8]
Net take-up and completions in the US
in thousands of sq.ft.*
200,000
150,000
100,000
50,000
0
– 50,000
– 100,000
2001 2002 2003 2004 2005 2006 2007 2008 Q1–Q3
2009
Completions Net take-up
Source: CoStar
* 1 sq.ft. = 0.092903 sqm
Vacancy rates and changes in the average rent of
Class A office properties in the USA
in %
20
15
10
5
0
–5
– 10
2001 2002 2003 2004 2005 2006 2007 2008 Q3
2009
Source: CoStar Vacancy rate
Rental growth
KanAm Spezial grundinvest Fonds 21
Annual Report as of September 30, 2009 .................................... Fund Management Report
In spite of the improvement Banks only provided debt Secondly, the fall in transaction
Financing
in the third quarter, 2009 is opportu capital subject to very strin- volumes can be attributed to the con-
seeing a low level of real nities gent collateral requirements flicting price expectations of real estate
estate deals worldwide in in Europe and, in some cases, were buyers and sellers. Although real
historical terms. According continue not willing to finance loans estate service providers endeavor to
to Real Capital Analytics to improve of over EUR 50 million. This depict prices in the form of market
(RCA), global transaction explains why, for example, returns, the low number of representa-
volumes in the fir st six the number of individual tive property sales means that the
months of 2009 were 60% transactions valued at over indicative ability of these returns is
lower than during the first six months of EUR 50 million that were realized in Eu- questionable. In the USA, for example,
2008 and as much as 82% lower than rope in the first six months of 2009 was only 37 individual office properties
the same period in 2007. This drop in 81% lower than in the same period in worth over USD 50 million were sold in
transaction volumes can be attributed 2007. By contrast, the sale of proper- the first nine months of the year, com-
to two main reasons: ties up to EUR 50 million only fell by pared with 184 in 2008 and as many as
45%. However, financing options in Eu- 412 in 2007. The same goes for Europe,
Firstly, the difficulty in obtaining debt rope have improved again since the where the number of individual trans-
finance in the wake of the financial second half of 2009, boosting the actions worth over EUR 50 million fell
market crisis made it virtually impos- volume of transactions in Europe from 1,093 in 2007 to 518 in 2008 and
sible to finance large-scale properties. again. then to 103 in the first half of 2009.
Le Dionys, Paris
[Property Record page 68 / no. 2]
22 KanAm Spezial grundinvest Fonds
Based on these meager data, real key drivers of the m ove m e nt s o n
Transaction Transaction
estate service providers and research economy – i.e., volumes for volumes the real estate
firms are currently determining returns consumer spend commercial for office markets will be
for 63 office real estate markets in the ing, investments, real estate properties lower than during
USA and 47 in Europe, among others. and exports – will in Europe in the USA the boom years
Accordingly, there is a risk that the re r e t u r n to s u s 2006 and 2007. In
turns determined in this way have over tainable growth. the current envi
stated the market correction. This in Should this be the ronment, inves
turn leads to differences between the case, it will also tors are also
price expectations of property buyers noticeably im focusing more
and those of sellers, and to a reduction prove the outlook strongly again on
in transaction volumes. In the mean for the labor mar the fundamental
time, buyers are differentiating be kets and, in turn, qualit y of their
tween investments to a far greater de the real estate investments – i.e.,
USD 130 billion
EUR 246 billion
EUR 117 billion
USD 58 billion
EUR 42 billion
USD 14 billion
gree than before based on their markets. On the on good locations,
individual quality. A prime example of strength of high building
this is London’s Docklands submarket. current economic q u a l i t y, a n d –
In September 2009, a building that was forecasts, rents
2007 2008 Q1–Q3
2009
2007 2008 Q1–Q3
2009
above all – the
leased for 25 years was sold for a 5.8% can be expected property’s leas
return even though the published prime to continue falling ing situation.
yield was 6.5%. in 2009 and 2010. Source: CB Richard Ellis Source: CoStar Solid investments
In 2010, the eco are those with a
Outlook nomic forecasts for individual countries minimum of leases expiring in the crisis
span a wider spectrum. While the IMF years 2009 and 2010. In the medium to
All in all, it is safe to say at present that predicts substantial economic growth long term, the attractiveness of real
the outlook for commercial real estate of 1.5% for the USA as early as 2010, estate investments is expected to
markets has improved. However, be only 0.3% is expected for the euro increase on account of the growing risk
fore a marked recovery can take place, zone. This suggests that, on the whole, of inflation. This is because some prop
the economy as a whole must regain US real estate markets will recover erties have leases that are linked to an
momentum. This is only partially the more quickly than their European inflation index, thus ensuring an infla
case at present, as economic growth is counterparts. tionproof income.
driven primarily by the public sector.
The coming quarters will show whether Given the developments seen on the
the efforts of governments and central global real estate markets, it can be
banks have paid off and whether the expected in the short term that capital
The views and forecasts contained in this market analysis are based on careful research. Although all information has been taken from sources considered to be reliable,
no assurance can be given that it is accurate, complete, and adequate.
Date of analysis: October 31, 2009
KanAm Spezial grundinvest Fonds 23
Annual Report as of September 30, 2009 .................................... Fund Management Report
KanAm Spezial grundinvest Fonds’ CONCEPT HAS PROVEN ITSELF:
FOR FIVE YEARS, THE FUND HAS PROVIDED INSTITUTIONAL
INVESTORS A MEDIUM- TO LONG-TERM ALTERNATIVE INVESTMENT
OFFERING HIGH STABILITY AND STEADY GROWTH.
Investor Structure
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
KanAm Spezial grundinvest Fonds was m i n i m u m c o m m i t m e n t s . Ka n A m
founded some five years ago with the Spezial grundinvest Fonds has also set
aim of serving institutional investors’ an upper investment limit of EUR 40
wishes, while also permitting them to million, thus preventing individual
commit only medium-sized investment investors from exerting too great an
volumes. Consequently, it takes the influence on the fund’s strategy.
form of an open-ended real estate
fund, although it is not distributed to As of the reporting date of September
the public. The fund’s management 30, 2009, the largest stake in the fund
focuses on these customers’ desire for held by an individual investor was
a stable, high-yield medium- to long- 9.6%. 77.1% was distributed among
term investment that also offers the investors holding less than 5% of the
security of material assets. The fund fund assets. 98.2% of fund assets
was designed in line with this and the were held by investors who have
invested more than EUR 1 million.
A clear profile At the moment Funds of funds hold the
largest proportion of fund assets, ac-
KanAm Spezial grundinvest Fonds is
positive response from investors clear- counting for 52.8% in total. They are
designed to meet the wishes of insti- ly shows that expectations are being followed by banks (39.5%) and pen-
tutional investors but requires only
medium-sized minimum investment met. The minimum investment amount sion funds (5.0%). Foundations ac-
volumes.
for KanAm S pezial grundinvest Fonds count for 0.9%, family offices for
Tailor-made is EUR 500,000. This is what makes 0.8%, ecclesiastical institutions for
this fund different from most compa- 0.7%, and other institutional investors
rable funds that require much higher for 0.3%.
24 KanAm Spezial grundinvest Fonds
INFO
AVIVA C, Paris
[Property Record page 68 /
no. 1]
Investor structure Investor structure as a Investor structure by
by sector percentage of fund assets investment volume
Family offices
0.8% Investors with an
Ecclesiastical investment volume
institutions Foundations up to EUR 1 million
0.7% 0.9% 1.8%
Other
institutional investors Pension funds Re
m
0.3% 5.0% ai
%
nd
9.6
er
<
2
Banks . 0%
%
39.5% 7.0
6.3%
3.9%
3.9
%
3.
2. 0%
0% 2.
9%
2 .1
2 .1
2.
%
2.2
6%
2 .6
Investors with an
%
Funds of
2 .4%
2 .5%
2.4%
2.4%
%
%
funds investment volume
52.8 % > EUR 1 million
98.2 %
KanAm Spezial grundinvest Fonds 25
Annual Report as of September 30, 2009 .................................... Fund Management Report
Real Estate Portfolio Structure
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Geographical distribution Based on the market values, the Nether Geographical distribution of
lands accounted for 38.5% of the properties by market value
The KanAm Spezial grundinvest Fonds KanAm Spezial grundinvest Fonds port
portfolio was further expanded during folio at the end of the period under
Luxembourg Netherlands
the period under review. The fund’s review. This was followed by France 4.4 % 38.5 %
management strengthened its pres (34.6%), Switzerland (12.2%), Greece Greece
10.3 %
ence in the French capital – whose real (10.3%), and Luxembourg (4.4%).
Switzerland
estate market is still considered to be 12.2 %
one of the most attractive in the world – Types of use
with the acquisition of an office and
retail building in downtown Paris. Prior As of the reporting date, KanAm Spezial
to this, the fund already expanded its grundinvest Fonds was invested mainly
portfolio to include a hotel property in in office properties as well as in one
Zurich and an office property in Lille, hotel property. Our goal is to generate
France. stable, longterm income for investors.
We therefore continued to diversify the France
As of the reporting date of September fund portfolio with regard to both the 34.6 %
30, 2009, KanAm Spezial grundinvest properties’ locations and their types of
Fonds’ portfolio consisted of 13 prop use, particularly in the period under
erties. Eleven of these were in euro review. Further potential investments
zone countries: five in the Netherlands, are currently being examined.
four in France, one in Greece, and one
in Luxembourg. In addition, the port
folio contains two properties in the
Swiss cities of Zurich and Geneva.
Expiring leases
(based on annual rental income)
between October 1, 2009 and December 31, 2009 5.1%
between January 1, 2010 and December 31, 2010 0.4%
between January 1, 2011 and December 31, 2011 0.0%
between January 1, 2012 and December 31, 2012 16.2%
between January 1, 2013 and December 31, 2013 0.0%
between January 1, 2014 and December 31, 2014 9.0%
between January 1, 2015 and December 31, 2015 15.0%
between January 1, 2016 and December 31, 2016 19.0%
between January 1, 2017 and December 31, 2017 16.8%
between January 1, 2018 and December 31, 2018 14.0%
after January 1, 2019 4.5%
26 KanAm Spezial grundinvest Fonds
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Type of use of properties based Economic age structure* of Properties by investment volume
on annual rental income properties by market value (market value)
Retail/catering Other > 15 to 20 years up to 5 years up to EUR 25 million
1.3% 0.5% 3.3% 68.9% 22.6%
Parking Hotel > 10 to 15 years
7.4% 3.6% 6.9%
> 5 to 10 years
20.9%
> EUR 50 million > EUR 25 million
Office to 100 million to 50 million
87.2% 64.8% 12.6%
* The age of a property is determined based on the
remaining useful life stated in the expert appraisal.
Economic age structure together with the fungibility of the prop- of leases extend for longer than Janu-
erty, is a key decision criterion. Proper- ary 1, 2017. In the period under review,
KanAm S pe zia l grundinvest Fonds ties with a market value of between the fund’s asset management team
invests primarily in newly constructed EUR 50 million and EUR 100 million ac- successfully negotiated five-year ex-
and young properties. 89.8% of the count for the largest proportion of the tensions of the leases for the Nieuwe
buildings are ten years old or younger portfolio (64.8%). 12.6% of the proper- Vaart property with the Amsterdam
and a sizeable 68.9% are no more than ties have a market value of over EUR 25 Traffic and Transport Authority. New
five years old. 6.9% of properties were million and up to EUR 50 million. Prop- leases were also signed for the Le
between 10 and 15 years old as of the erties worth up to EUR 25 million make Lumion property in Geneva.
reporting date. 3.3% of properties are up 22.6% of the real estate portfolio.
between 15 and 20 years old. This
means that the remaining useful lives Lease terms
of the properties are high, while mod-
ernization costs are low. This proves to When making new acquisitions, we
be an advantage when it comes to focus on the existence of long-term
leasing and potentially disposing of the leases with financially sound tenants.
properties. This factor has been a quality feature at
KanAm Spezial grundinvest Fonds ever
Properties by investment volume since it was launched, as it is ultimate-
ly instrumental in ensuring reliable rent-
Before any potential acquisition, we al payments and income. 94.5% of
assess whether the property’s size is leases have terms extending beyond
appropriate to the fund volume. This, 2011, and 78.3% beyond 2013. 35.3%
KanAm Spezial grundinvest Fonds 27
Annual Report as of September 30, 2009 .................................... Fund Management Report
Loans and Exchange Rate Risks
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Ratio of loans to total real estate assets as of September 30, 2009
Loan volume Share
(indirect via of total
Loan volume real estate Total loan real estate
(direct) companies) volume assets
in EUR million in EUR million in EUR million in %
EUR-denominated loans 135.3 0.0 135.3 24.8
CHF-denominated loans 51.0 0.0 51.0 9.4
Total 186.3 0.0 186.3 34.2
For information on the foreign currency and the exchange rate as of the reporting date of September 30, 2009, please see page 57.
Loan management Breakdown of loan volumes by Breakdown of loan volumes by
remaining fixed-rate period maturity of loan agreements
The interest rates for the entire loan
volume are largely fixed over the
5 to 10 years1) Less than 1 year1)
medium and long term. 22.7% 5.9% 2019 2011
4.8% 6.0%
1 to 2 years 1)
6.0% 2017 2012
To the extent that the fund’s manage- 15.1% 29.0%
ment considers taking out debt finance
in the course of new acquisitions to be
sensible, a tendering procedure is car-
ried out with independent banks. The
resulting lender competition enables
KanAm S pezial grundinvest Fonds to
2016
negotiate the best possible loan condi- 11.4 %
2014
tions. 4.0%
2 to 5 years1) 2015
65.4% 29.7%
1)
Loan volume (direct)
28 KanAm Spezial grundinvest Fonds
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Overview of assets belonging to KanAm Spezial grundinvest Fonds denominated in foreign currencies
CHF
in EUR million
Real estate and equity interests in real estate companies 66.3
Other assets and bank deposits 1.3
Less loans 51.0
Less other liabilities and provisions 2.0
Fund assets 14.6
Forward exchange transactions 14.5
Open foreign currency positions 0.1
Open foreign currency positions as a proportion of fund assets in % 0.03
Open foreign currency positions as a proportion of total assets in % 0.02
For information on the foreign currency and the exchange rate as of the reporting date of September 30, 2009, please see page 57.
Assets in CHF
Bank deposits Other assets
1.4 million (1.4%) 0.5 million (0.5%)
Real estate
100.1 million (98.1%)
KanAm Spezial grundinvest Fonds 29
Annual Report as of September 30, 2009 .................................... Fund Management Report
EVER SINCE THE FUND WAS LAUNCHED, ITS MANAGEMENT HAS
PAID PARTICULAR ATTENTION TO TENANT CREDITWORTHINESS
AND LONG LEASE TERMS. THIS QUALITY CRITERION ENSURES
STABILITY AND VALUE, PARTICULARLY IN TIMES OF CRISIS.
PUBLIC SECTOR OR NEAR-PUBLIC SECTOR TENANTS WITH
PRACTICALLY NO DEFAULT RISK ACCOUNTED FOR ROUGHLY ONE
THIRD OF TOTAL SPACE IN THE FISCAL YEAR.
Leasing and Tenant Creditworthiness
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Leased rate: 100% agencies. The remaining 32.6% of FAC T S
tenants are companies that are unrated
Since its launch, KanAm Spezial grund- due to the sector in which they operate. Leased rate: 100%
invest Fonds has had a leased rate of At the end of the period under review, High proportion of public
100%. This success lays the founda- 98.5% of tenants who were either rated sector or near-public
tion for sustainable performance. As of or classified as such had high credit sector tenants
the reporting date of September 30, ratings. Low tenant default risk
2009, all properties contained in the as a result
portfolio were fully leased. In the period
under review we were also able to
maintain the number of public sector Creditworthiness of all tenants Creditworthiness of rated tenants
and near-public sector tenants at a in % of total space leased in % of total space leased
constant level, specifically minimizing
the tenant default risk. The remaining Tenants with Tenants with
Unrated tenants Rated tenants medium credit ratings high credit ratings
space is leased to companies with 36.1% 1.5% 52.0%
32.6%
predominantly high credit scores.
Tenants with high credit ratings
As of the reporting date of September
30, 2009, 31.3% of the space in the
KanAm Spezial grundinvest Fonds was
leased to public sector institutions, for
which the tenant default risk is virtually
zero. 36.1% of the tenants have been Public sector tenants Public sector tenants
31.3% 46.5%
rated by well-known independent
30 KanAm Spezial grundinvest Fonds
1. PULSAR, Paris
Top location: The PULSAR office and retail building is located in the
central business district, one of the French capital’s most frequented
quarters. The main retail tenant is Starbucks Coffee France S.A.S.
2. Laan op Zuid, Rotterdam
Green building: This property, in the Kop van Zuid office district, was
certified as a green building in accordance with the strict Dutch certifica-
tion system. Environmentally friendly heating and cooling using a geo-
thermal power plant were two of the key factors leading to this.
3. Helex Building B, Athens
Helex Building B is located in the Greek capital’s up-and-coming
financial center. Its neighbors include public sector institutions such
as the Interior Ministry as well as banks and the Stock Exchange.
4. Nieuwe Vaart, Amsterdam
The Amsterdam Traffic and Transport Authority is the property’s sole
tenant. The lease was recently extended to 2014. The property enjoys
an excellent city location in the immediate vicinity of the Central Station
and the pedestrian zone.
5. Le Dionys, Paris/Saint-Denis
The building – located on Avenue du Président Wilson in the south
of downtown Saint-Denis, not far from Paris – boasts an elegant
architectural design, modern appointments, and ideal transportation
links. It is leased to a social insurance institution that is responsible
for pension and health insurance for the self-employed.
6. La Madeleine, Lille
This modern office building in the Euralille submarket is fully leased
to financial services provider FINAREF. The tenant has signed a long-
term lease. The two TGV stations Lille Europe and Lille Flandres are in
the immediate vicinity.
KanAm Spezial grundinvest Fonds 31
Annual Report as of September 30, 2009 .................................... Fund Management Report
New Acquisitions
34 PAris:
PULsAr
38 ZUrich:
hotel holiday inn Zurich Messe
Transfer of a completed project to the
portfolio
40 LiLLe:
La Madeleine
KanAm SPEZIAL grundinvest Fonds acquired a fully
modernized property in a top location in Paris, Eu-
rope’s largest office property market. The PULSAR
office and retail building is located in the French cap-
ital’s central business district. France’s second most
important train station is also located in the
immediate vicinity. Another advantage: Long-term
leases were agreed with both the office and retail
tenants.
32 KanAm Spezial grundinvest Fonds
KanAm Spezial grundinvest Fonds 33
Annual Report as of September 30, 2009 .................................... Fund Management Report
PULSAR, Paris
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
The PULSAR office and retail building space of approximately 1,810 sqm
FAC T S
acquired by KanAm Spezial grundinvest on seven stories above ground and one
Fonds in Paris is located in the east of below. The move represents the first
the 8th arrondissement, on the square time that the fund’s management has Very good location in Paris’
directly in front of France’s second acquired a property that is used as a central business district
most important train station, the Gare retail and office property. The main Property was extensively
Saint Lazare. The retailers and the office tenant is the consulting firm renovated, ending in 2007
Starbucks coffee shop located in the Krauthammer International S.A. All Attractive tenant and
property benefit from this very popular office space is leased until 2017. The i
ndustry mix
location. For many people who arrive at main retail tenant is Starbucks Coffee Long-term leases
the Saint-Lazare train station, their first France S.A.S., which has signed a Excellent public transpor-
port of call is at Starbucks for a quick long-term lease that runs until 2019. tation links
coffee.
The property was built in 1868 and was
extensively renovated between 1997
and 2007. It comprises total floor
The 19 th century
property’s
architectural
charm has been
combined with
a modern interior
34 KanAm Spezial grundinvest Fonds
KanAm Spezial grundinvest Fonds 35
Annual Report as of September 30, 2009 .................................... Fund Management Report
Location analysis
Paris is the largest office real estate were only 6.5% in the third quarter
market in Europe and one of the of 2009, significantly below the aver-
most attractive in the world. The age figure for comparable major EU
French capital has even proven it- cities. One of the reasons for this is
self to be remarkably resistant to undoubtedly that many of the coun-
the effects of the financial and eco- try’s most important companies
nomic crisis. In the first quarter of and leading institutions have their
2009, as growth in all the industrial- headquarters in the city on the
ized nations slumped, the Paris of- Seine. Demand will therefore
fice real estate market was award- remain high, while the volume of
ed a “B” (above-average potential, expected completions will decline
below-average investment risk) by significantly in the coming three
independent rating agency Feri. years.
The figures confirm this: Vacancy
rates in the Paris real estate market
Saint-Quen N1
Boulevard Périphérique
Courbevoie
Levallois-
Perret N3
Le Pré-
8. Arrondissement Saint-Gervais
Neuilly-sur-Seine
e
PULSAR
in
Pulsar
Se
PULSAR, Paris
Champs-
Elysées
Élyseés Gare
Ru
Saint Lazare
Rue
e
du
de R
Rue re
Ro
eu
Intéri
ch
e
ome
in
er
Se
A13
Saint-Cloud PULSAR Rue
PARIS nière Saint-
Laza
re
Boulogne- Rue de la Pépi
Rue
Pasquier
u
Billancourt
d’Anjo
Bo
u
N189 levard Boule
Pé ri vard H
phé aussm
ri
que
Rue
ann
Montrouge 8. Arrondissement
A6a
36 KanAm Spezial grundinvest Fonds
International companies and top hotels location is its very convenient public PULSAR, PARiS
are located in the immediate vicinity of transportation links. A metro and an 2, RUe de LA PéPinièRe
the building. For example, its neighbors urban rail (RER) station, the Saint Location
include the Royal Bank of Scotland, Lazare train station, and a bus stop 8th arrondissement, opposite
the Saint-Lazare train station
UBS France, and the British consulate. servicing 15 routes are all located in
Another advantage of the property’s the direct vicinity. Transportation links
Very good, metro and urban rail
(RER) stations, train station
earby, a bus stop servicing
n
15 routes
Use
Office and retail property
Floor space
1,810 sqm
Tenants
Starbucks Coffee France
S.A.S., Krauthammer
I
nternational S.A., etc.
Lease terms
Office space until 2017,
retail space until 2019
Year constructed
1868, renovated in the period
up to 2007
Special features
Superior location, attractive
sector and tenant mix
The main
retail tenant in the
PULSAR building
is Starbucks Coffee
France S.A.S.
The office floors
also have
a modern
atmosphere
KanAm Spezial grundinvest Fonds 37
Annual Report as of September 30, 2009 .................................... Fund Management Report
Transfer of a completed project to the
portfolio
Holiday Inn Zurich Messe, Zurich
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
The new Holiday Inn Zurich Messe OC Oerlikon, one of the world’s lead-
trade fair cente r hotel in Zurich ing high-tech industrial groups, and
opened in spring 2009. The three-star Swiss television company Schweizer
hotel, located in the immediate vicinity Fernsehen are located in the imme-
of the trade fair and halfway between diate vicinity.
the city center and the international
a i r p o r t, i s o p e r ate d by Tu r i c u m The hotel’s location is particularly
S ys te m s H ote l s Zü r i c h AG . T he interesting as there were previously
franchiser is the InterContinental no other dedicated trade fair hotels in
Hotels Group with the Holiday Inn Zurich with such good transportation
brand. The lease runs for 20 years. links. In addition, the sophisticated
HoLIdAy Inn restaurant concept is intended to
ZURIcH MeSSe
A number of well-known major com- te m pt n o n - r e s i d e nt s a s we l l a s
Location
panies, such as Crédit Suisse, con- guests.
In the direct vicinity of the sulting firm PricewaterhouseCoopers,
Messe Zurich trade fair center,
Zurich-Oerlikon
Transportation links
Excellent links to international
transportation networks; down-
town Zurich and Kloten Airport
can be reached in minutes
Use Location analysis
Hotel property
Floor space The Zurich hotel market is dominated proximity of the international airport
164 guest bedrooms, 97 un- by a large number of privately owned has a positive effect. The fast trans-
derground parking spaces hotels. The large international hotel portation links to downtown Zurich
Lessee chains, on the other hand, have only and the airpor t are yet another
The franchiser is the InterConti- a small presence. The same is true of benefit of this microlocation.
nental Hotels Group with the modern, mid-range hotels in good
Holiday Inn brand.
locations. It is precisely this potential Independent experts also give a very
Lease that the new Holiday Inn Zurich upbeat assessment of the Holiday
20-year lease with extension Messe is targeting at a location that Inn Zurich Messe’s location and con-
options
offers three advantages: Firstly, of cept. For example, the hotel has the
completion course, the hotel is likely to benefit qualities necessary “to compete
March 2009 considerably from activities at the successfully with the generally high-
Special features trade fair center. Secondly, numerous er-priced, but much older hotels at
Very good location, benefits well-known companies have settled the location”, according to an analy-
from the trade fair center, its in the Oerlikon district, resulting in sis by Hotour, a consultant to the
proximity to the airport, and the
dynamic economy in Oerlikon, increasing demand for overnight hotel and tourism sector based in
home to many national and accommodation. And lastly, the Frankfurt am Main.
nternational companies.
i
38 KanAm Spezial grundinvest Fonds
KLOTEN
RÜMLANG
ZURICH-KLOTEN
AIRPORT
W AT T
A F F O LT E R N
OPTIKON
ORF
OBERHUSEN
U N T E R - A F F O LT E R N SEEBACH DIETLIKON
RIEDEN
OERLIKON WALLISELLEN
HÖNGG
WIPKINGEN Messe trade
fair center/
indoor stadium
UNTERSTRASS
INDUSTRIAL DISTRICT OERLIKON
A LT S T E T T E N
AUSSERSIHL
GG
TIKON HIRSLANDEN
KanAm Spezial grundinvest Fonds 39
Annual Report as of September 30, 2009 .................................... Fund Management Report
Location analysis
Lille is the third most impor tant important transportation hubs is by KanAm S p e z i a l grundinvest
financial center in France and tradi- likely the reason why a large num- Fonds is also adjacent to Lille’s
tionally a major location for the ber of international companies have second largest submarket, the
insur a nce indu str y. It be nef its chosen to establish themselves in Grand Boulevard, which has
greatly from its good transportation Lille. approximately 440,0 0 0 sqm of
links and easy access to the high- office space.
speed train network. The cities of The Euralille submarket has under-
Brussels, London, and Paris, for gone extremely dynamic growth in
example, can each be reached in recent years. Once completed, it
just an hour. This advantageous will offer around 320,000 sqm of
location at one of Europe’s most office space. The building acquired
40 KanAm Spezial grundinvest Fonds
La Madeleine office building, Lille
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
The northern French city of Lille is subsidiary of Crédit Agricole, which is
regarded as countr y’s third most currently rated Aa1 (equivalent to AA+)
important financial center. Many lead- by rating agency Moody’s. FINAREF
ing insurance companies are also has been located in Lille for some
headquartered here. KanAm S pezial 35 years.
grundinvest Fonds acquired the La
Madeleine of fice building in the
Euralille submarket, in the vicinity of
the two TGV stations Lille Europe and
Lille Flandres. The property has total
floor space of 6,513 sqm on eight
stories above ground, as well as
185 parking spaces, 27 of which are
outside. The property boasts a sophis-
ticated architectural design and excel-
lent transportation links. The Euralille
submarket has undergone extremely
dynamic growth in recent years. It will
soon offer around 320,000 sqm of
office space. La MadeLeine
Location
The La Madeleine office building, which 99, Avenue de la République,
was completed in 2004, is leased to Lille, France, Euralille submarket
financial services provider FINAREF. Transportation links
The lease runs until 2016. FINAREF is a Excellent links to local public
transportation and to the
h
ighway and road network;
a network hub for French
high-speed trains
Use
Office building
Floor space
6,513 sqm, plus 185 parking
spaces, 27 of them outside
Tenants
Fully leased to FINAREF
Lease term
Leased until 2016
Completion
2004
Special features
Very good position in an
e
stablished office location
with excellent transportation
links; highly creditworthy
Lille-Lesquin
airport t
enant; long-term lease
KanAm Spezial grundinvest Fonds 41
Annual Report as of September 30, 2009 .................................... Fund Management Report
44 RotteRdam:
Laan op Zuid
Laan op Zuid 391–469
45 amsteRdam:
Ruby Point
Hullenbergweg 1–3
46 PaRis/saint-denis:
Le dionys
260–264, avenue du Président Wilson /
Rue Francis de Pressensé
47 atHens:
Helex Building B
110 athinon avenue
48 tHe HaGUe:
Zilveren toren
Prinses Beatrixlaan 13–17
49 GeneVa:
Le Lumion
Rue François Peyrot 10–14
50 LUXemBoURG:
Centre Cloche d’or
10, Rue Henri schnadt
51 amsteRdam:
nieuwe Vaart
nieuwe Vaart 5–9
52 amsteRdam:
margriet toren
Haaksbergweg 75
53 PaRis/Bois-CoLomBes:
aViVa C
70, avenue de l’europe
42 KanAm Spezial grundinvest Fonds
Portfolio Properties
Ever since the fund was launched, its manage-
ment has invested in high-quality properties in
leading European locations. Although the focus
clearly continues to be on office properties, retail
space in Paris and a hotel building in Zurich were
added in the year under review. In addition, the
period under review saw a number of leasing
successes, despite the difficult economic climate.
KanAm Spezial grundinvest Fonds 43
Annual Report as of September 30, 2009 .................................... Fund Management Report
LAAn op Zuid Laan op Zuid, Rotterdam
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Location
This property is located in the Kop van The Laan op Zuid property was com-
Kop van Zuid office district, not
far from Rotterdam city center Zuid office district, close to Rotterdam pleted in 2008 and has been part of
city center and is leased to two public KanAm S pezial grundinvest Fonds’
Transportation links
sector institutions, both of which pose portfolio ever since. What is so special
Excellent: accessible by car
via the A16 highway. Subway practically no default risk. The main about this 19-story building: It is one of
station just 100 meters from tenant, UW V (Uitvoeringsinstituut the ten most sustainable office proper-
the property
Werknemers Verzekeringen), is a public ties in the Netherlands. Important crite-
use sector employee insurance agency. ria for this award are the environmen-
Office building The remaining space has been leased tally friendly heating and cooling of the
Floor space to Dutch government building agency property using a geothermal power
24,270 sqm on 19 stories RGD (Rjiksgebouwendienst) on behalf plant. As a result, the building was cer-
bove ground; 277 under-
a of the Rotterdam tax office. Both leases tified as a Green Building in accor-
ground parking spaces
run until 2018. There are also extension dance with GreenCalc+, the strict
Tenants
options. Dutch certification system.
Public sector tenants:
employee insurance agency
UWV and Dutch government
building agency RGD
Lease terms
Both leases run until 2018
Year constructed
2008
Special features
New, attractive office building
with public sector tenants,
Green Building
The Laan op Zuid
office building
is located
not far from
downtown
Rotterdam.
Two public sector
tenants share
the property
44 KanAm Spezial grundinvest Fonds
The Ruby Point
in Amsterdam
is located in
the Zuidoost
submarket
Ruby Point
Location
Amsterdam Zuidoost
transportation links
Very good, Holendrecht free-
way intersection approximately
150 meters away; city center
and airport accessible by car
Ruby Point, Amsterdam
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
in 15 minutes; good public
transportation links
KanAm S pe zia l grundinvest Fonds The Ruby Point office building is locat use
acquired the Ruby Point property in ed in Amsterdam’s Zuidoost submarket Office building
Amsterdam, which boasts an unusual, and has excellent transportation links.
Floor space
modern architectural design, as part of The Holendrecht freeway interchange
a sale and leaseback transaction. is located in the immediate vicinity, 5,217 sqm on five floors,
90 outside parking spaces
Unlimited Sports Group B.V. (USG) sold while the Dutch capital’s city center
the building to the fund and sub and the airport are also accessible by tenant
sequently leased it again in its entirety. car in 15 minutes. The property has Unlimited Sports Group B.V.
The lease runs until 2018. USG is the 5,217 sqm of floor space. It was Lease terms
largest independent company in the completed in 1987 and completely Until 2018
sport and lifestyle sector in the Bene renovated in 2004.
lux countries. It is also the owner of year constructed
numerous brands and licenses. USG 1987 (technical facilities
odernized in 2004)
m
now operates a large number of
branches in Germany. Special features
Medium-sized property at
a dynamic location
KanAm Spezial grundinvest Fonds 45
Annual Report as of September 30, 2009 .................................... Fund Management Report
Le DionyS Le Dionys, Paris/Saint-Denis
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Location
The modern office building is leased to The Le Dionys property is located in
In the south of central
RSI (Régime Social des Indépendants), the south of central Saint-Denis,
Saint-Denis, between Paris
city center and Charles de a social insurance institution that is between Paris city center and Charles
Gaulle airport responsible for pension and health de Gaulle airport. The building was
Transportation links insurance for the self-employed. As completed in 2005 and has 14,311 sqm
Very good, access to two key RSI performs a public service, it has of floor space on seven floors. The Le
highways (A1 and A86) within allowed us to further minimize potential Jade and Le Stadium properties, which
a radius of approximately
tenant default risk in a targeted manner. were acquired for the KanAm grund
250 meters
The lease runs until 2016. invest Fonds mutual fund, are both
Use located nearby.
Office building
Floor space
14,311 sqm on seven floors,
270 underground parking
spaces
Tenant
RSI, a near-public sector social
insurance institution
Lease terms
Until 2016
year constructed
2005
Special features
Modern office building in an
e
stablished location
The Le Dionys
office building in
Paris/Saint-Denis
offers a
sophisticated
entrance area
46 KanAm Spezial grundinvest Fonds
Helex Building B
location
On Athinon Avenue, one of the
most important arteries in Ath-
ens, in the immediate vicinity of
the Stock Exchange and lead-
ing financial services providers
Transportation links
The submarket is scheduled to
be linked to the Athens subway
network, giving it very good
connections to the city center
use
Office building
Floor space
12,315 sqm on eight floors,
243 underground parking spaces
in four stories below ground
Tenant
Babis Vovos International
onstruction S.A.
C
lease terms
Until 2015
Year constructed
2007
Special features
Up-and-coming microlocation,
excellent address for financial
services providers
Helex Building B, Athens
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
KanAm S pezial grundinvest Fonds’ the financial sector, including the Bank
acquisition of this property marked its of Greece, the Athens Stock Exchange,
first ever investment outside the classic Allianz, and the Greek Interior Ministry
European markets. The fund decided are to be found in the neighborhood.
to invest in a promising submarket in
the Greek capital in order to further The property, which has total floor
diversify the por tfolio. The Helex space of 12,315 sqm on eight stories, is
Building B office property is located in leased to Babis Vovos International
Athens’s up-and-coming financial Construction S.A. This listed company
center on Athinon Avenue and was has leased the unusual building until
completed in 2007. Leading names in 2015.
KanAm Spezial grundinvest Fonds 47
Annual Report as of September 30, 2009 .................................... Fund Management Report
Zilveren Toren, The Hague
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
This freestanding landmark building in The Zilveren Toren building was
one of The Hague’s top locations is constructed in 1969 and extensively
also the largest property in KanAm renovated in 2000. Its extremely good
Spezial grundinvest Fonds’ portfolio. It transportation links are one of its
offers total floor space of 27,216 sqm advantages. A highway on-ramp is
on 19 stories above ground. The prop- located directly next to the property
erty also boasts partial ownership of a and Schiphol Airport is 40 km away.
neighboring parking garage. It has Even more valuable is access to the
been leased to Nationale-Nederlanden “Randstad Rail”, which connects the
Nederland B.V., an insurance company Beatrix Quar ter to downtown The
belonging to the ING Group, one of the Hague, the western parts of the city,
world’s leading financial ser vices and Rotterdam.
ZILVeRen ToRen providers. The lease runs until the end
Location of 2012.
Freestanding landmark building
in the Beatrix Quarter, one of
the best locations in The
Hague
Transportation links
Excellent transportation links
thanks to direct highway access
as well as public transportation
stops within walking distance;
Schiphol Airport 40 km away
Use
Office building
Floor space
27,216 sqm, comprising
1
9 stories above ground and
partial ownership of a neigh-
boring parking garage with
211 parking spaces, as well as
an additional 22 parking spaces
Tenant
Nationale-Nederlanden
Nederland B.V. (ING Group)
Lease terms
Until the end of 2012
Year constructed
1969, renovated in 2000
Special features
Access to the “Randstad Rail”,
which connects the Beatrix
Quarter to the city center and
the western part of The Hague,
as well as to Rotterdam
48 KanAm Spezial grundinvest Fonds
Le Lumion, Geneva
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Transportation links don’t get any the world’s large st provide r s of
better than this: Geneva International software and IT services.
Airport can be reached from this build-
ing via a pedestrian bridge. The light- In the period under review, Sungard
flooded building with its striking glass S.A. leased the space originally leased
facade offers total floor space of by Gesrep S.A. The same rental terms
5,498 sqm on four stories above were agreed. In addition, SOS Assis-
ground. The highly solvent tenants tance S.A. took over parts of Zurich
Le Lumion
sharing the space include Zurich Versicherungs-Gesellschaft’s space.
Versicherungs-Gesellschaft, trading Most of the leases run until 2015, which Location
company INVISTA, Stryker Trauma is long in Swiss terms and testifies to In Geneva’s Grand-Saconnex
S.A., a medical device manufacturer, the proper ty’s attractiveness and suburb across from Geneva
I
nternational Airport
and Sungard (Switzerland) S.A., one of outstanding location.
Transportation links
Excellent transportation links
via its own highway on- and
off-ramp, as well as a pedes-
trian bridge linking the property
directly to the airport and the
long-distance railway
use
Office building
Floor space
5,498 sqm, comprising four
stories above ground and one
story below ground, 85 parking
spaces in the basement and a
further 66 outside
Tenant
Zürich Versicherungs-Gesell-
schaft, a listed Swiss insurance
company
Sungard (Switzerland) S.A.,
one of the world’s largest pro-
viders of software and IT ser-
vices
INVISTA, a textiles trading
company
Stryker Trauma S.A., a listed
medical device manufacturer
SOS Assistance S.A.
Lease terms
Most leases run until 2015
Year constructed
2004
Special features
Remarkably long lease terms,
since these usually only run for
five years in Switzerland
KanAm Spezial grundinvest Fonds 49
Annual Report as of September 30, 2009 .................................... Fund Management Report
Centre Cloche d’Or, Luxembourg
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � CentRe CLOChe d’OR
Location
This modern office property was com- to any further expansion of its busi-
On the southern edge of
pleted in 2005 and is located in the ness. This does not affect the 100%
L
uxembourg City, in the estab-
Gasperich office district in the south of leased rate. lished Gasperich office district
Luxembourg City. The property com-
transportation links
prises total floor space of 4,326 sqm on The Centre Cloche d’Or building
Excellent transportation links
four stories above ground level, 34 un- appeals to tenants not just due to its including public transportation
derground parking spaces, and eight excellent transportation links: It is also stops within walking distance,
as well as the peripheral
outside parking spaces. All leases run in a very good and prestigious location
xpressway 200 meters south
e
until 2014. The main tenant is account- for office properties. Its neighbors of the property
ing firm Mazars S.A. with 88% of the include European Union institutions,
Use
total floor space. Mazars S.A. has an ING Bank, and consulting firm
Office building
option to lease the remaining space as PricewaterhouseCoopers.
of January 1, 2012, allowing it to react Floor space
4,326 sqm, comprising four
stories above ground, 34 un-
derground parking spaces and
eight outside parking spaces
tenants
Mazars S.A., an accounting
firm
Grossfeld PAP S.A., a project
developer
Lease terms
Leased until 2014
Year constructed
2005
Special features
European Union institutions,
ING Bank, PwC, etc., in the
mmediate neighborhood
i
The Centre Cloche
d’Or office property
in Luxembourg
offers transparent,
light-flooded offices
50 KanAm Spezial grundinvest Fonds
The Nieuwe Vaart
property, which
is leased to the
Amsterdam Traffic
and Transport
Authority, is located
in the immediate
vicinity of the
Dutch capital’s
Central Station
Nieuwe VAArt
Location
On the eastern edge of
msterdam city center, across
A
from the Shipping Museum
and in the immediate vicinity
of the Central Station and the
pedestrian zone
transportation links
Excellent, with direct access
to the public transportation
n
etwork and the highway
use
Office building
Floor space
6,112 sqm, comprising five
tories above ground;
s
28 parking spaces in front
of the building
Nieuwe Vaart, Amsterdam
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
tenant
The Nieuwe Vaart property, which was The location also boasts excellent links Amsterdam Traffic and Trans
port Authority (Dienst Infra
built in 1879 and was last extensively to the public transportation network structuur Verkeer en Vervoer)
renovated in 1999, profits from its and the highway.
Lease terms
central location in the Dutch capital. It
Until 2014
is situated in Amsterdam’s city center, The property has been leased to the
across from the Shipping Museum and Amsterdam Traf fic and Transpor t Year constructed
in the immediate vicinity of the Central Authority (Dienst Infrastructuur Verkeer 1879, extensively renovated
Station and the pedestrian zone. Its en Vervoer). As the latter is a public most recently in 1999
five stories provide 6,112 sqm of floor sector tenant, there is virtually no Special features
space. The property also has 28 parking default risk. Thanks to proactive asset Tenant is a public service
spaces directly in front of the building. management, the lease was success- rovider, practically no default
p
risk
fully extended until 2014.
KanAm Spezial grundinvest Fonds 51
Annual Report as of September 30, 2009 .................................... Fund Management Report
The Margriet Toren
property is located
in Amsterdam’s
Zuidoost submarket.
Its good
transportation
links are just one
of its advantages
MARgRieT ToRen
Location
In Amsterdam Zuidoost,
the city‘s largest submarket,
in the direct vicinity of the
ArenA and the Arena Boule-
vard shopping street
Transportation links
Very good and fast connections
to the center of Amsterdam,
both by public transportation
and via the nearby Holendrecht
freeway intersection
Use
Office building
Floor space
9,082 sqm, comprising
16 stories above ground
and 91 parking spaces in a
separate parking deck next
to the building
Tenant
Margriet Toren, Amsterdam
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � Sanoma Uitgevers B.V.,
the Dutch subsidiary of an
The Margriet Toren property in the to the building. The A msterdam internationally active Finnish
publishing company
south of the Dutch capital (Amsterdam Zuidoost location is the city’s largest
Zu i d o o s t) i s l e a s e d to S a n o m a submarket. Lease terms
Uitgevers B.V., the Dutch subsidiary of Until the end of November 2009
an inte rnationally active Finnish The property was completed in 1994
Year constructed
publishing company. The building and its location allows Amsterdam city
1994, renovated 2005
c o m p r i s e s to t a l f l o o r s p a c e o f center to be reached quickly and easily
9,082 sqm on 16 stories above ground using public transportation. It is also in Special features
level. The property also has 91 parking the immediate vicinity of the Holen Separate parking deck next
to the building
spaces in a separate parking deck next drecht freeway intersection.
52 KanAm Spezial grundinvest Fonds
AVIVA C, Paris/Bois-Colombes
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
AVIVA C
Location
The AVIVA C office building in Bois-Co- Sections A and B are part of the port-
Northwest of Paris, on the
lombe s nea r Pa ris is lease d to folio belonging to KanAm grundinvest
b
order of Bois-Colombes and
AVIVA France S.A., the French sub- Fonds. Courbevoie, in the immediate
sidiary of AVIVA, one of the world’s larg- vicinity of La Défense
est insurance groups until 2017. This Another advantage of this property is Transportation links
building, acquired by KanAm Spezial its good location, which offers excel- Excellent transportation links
grundinvest Fonds in 2005, has 13,081 lent transportation links to Paris city to the center of Paris and all
major expressways and high-
sqm of floor space and is part of a three- center and all major highways in the
ways in the region
building ensemble boasting an elegant region.
architectural design. Bois-Colombes is Use
located not far from the well-known Paris Office building
office market of La Défense. Floor space
13,081 sqm and
251 parking spaces
Tenant
AVIVA France S.A.,
the French subsidiary of AVIVA,
one of the world’s largest
i
nsurance groups
Lease terms
Until 2017
Year constructed
2005
Special features
Excellent transportation links;
flexible use and space
a
llocation thanks to high
t
echnical standards
Architecture for
the discerning:
The AVIVA C office
building in
Bois-Colombes
near Paris
with its
aesthetically
pleasing design
KanAm Spezial grundinvest Fonds 53
Annual Report as of September 30, 2009 .................................... Fund Management Report
Outlook
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Thanks to its quality-oriented invest- possible to acquire properties in prime This investment strategy and quality
ment strategy, KanAm Spezial grund locations at reasonable prices. With philosophy are designed to enable us
invest Fonds has been a success ever this in mind, we are currently looking to continue enhancing your investment
since it was launched. We will continue into the possible acquisition of addi- performance.
to systematically pursue this course tional interesting properties. Although
while retaining the flexibility required to our focus is on eurozone countries, we Even though we expect the global
respond to changing market oppor- are also considering increasing our economy to continue stabilizing in the
tunities. For example, the fund is exposure to the Swiss market. coming months, we feel that there still
currently benefitting from its position will be long-term effects to contend
as an equity-rich investor. In the wake As always, we intend above all to with, not least the risk of rising inflation.
of the global economic turbulence seen acquire properties with financially In view of this, there is likely to be
in recent months, banks are still reluc- sound tenants and long-term leases, growing interest in material assets such
tant to provide loan capital, meaning and are aiming to further increase the as real estate among institutional
that it is almost impossible to finance proportion of public sector and near- investors over the next years.
highly leveraged acquisitions. The public sector tenants. Needless to say,
objective of such leveraged acquisi- we will keep you, our valued investors, As KanAm Spezial grundinvest Fonds’
tions – to acquire as many properties duly informed about any new acqui- fifth fiscal year draws to a close, we
as possible with a minimum of equity sitions. As a general principle, all would like to thank you once again for
capital – had previously pushed up investments must contribute towards the confidence that you have shown in
prices significantly in some cases on maintaining and further improving the us during the various economic cycles.
the key real estate markets. sustainable income generated by We would also like to extend our thanks
KanAm S pezial grundinvest Fonds. to our dedicated sales partners and
Nevertheless, the fund’s management Wherever leases are due to expire in skilled employees, all of whom have
will expand the portfolio carefully and the medium term, our proactive asset played an important part in our fund’s
with due regard for our proven quality management activities are designed to five-year success story. With their help,
philosophy. In other words, we will seek out attractive follow-up solu- we will continue our activities with the
seize opportunities if and when it is tions. aim of fully meeting our investors’
wishes and expectations.
Frankfurt am Main, November 2009
Sincerely,
Olivier Catusse Hans-Joachim Kleinert Matti Kreutzer Carmen Reschke
M a n a g i n g D i r e c to r s , K a n A m G r u n d S p e z i a l f o n d s g e s e l l s c h a f t m b H
54 KanAm Spezial grundinvest Fonds
FACTS AND FIGURES
[57] Return, Valuation, and Leasing
[62] Statement of Changes in Fund Assets
[64] Statement of Assets
[68] Property Record
[72] Record of Acquisitions
[73] Hedging Transactions and Liquidity Portfolio
[74] Income Statement
[76] Calculation of the Distribution
[77] Auditors’ Report
[78] Tax Information
[87] Information on Bases of Taxation to be Disclosed to Investors
[90] Interim Profits Subject to Income Tax
[91] Gains from Real Estate and Equities
[92] Certification in Accordance with Section 5(1) Sentence 1
No. 3 of the InvStG
[93] Income Tax Treatment of the Distribution, Income Subject to
Investment Income Tax, Investment Performance
[94] Executive Bodies
KanAm Spezial grundinvest Fonds 55
Annual Report as of September 30, 2009 .................................... Facts and Figures
56 KanAm Spezial grundinvest Fonds
Return, Valuation, and Leasing
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Statement of recognized income
EUR EUR
Net income from investment
(see Income Statement on page 74) 19,103,828.90
+ Remeasurement gains/losses – real estate*
Changes in value of unrealized gains on properties 7,003,322.56
Changes in value of unrealized losses on properties – 7,346,721.59
Changes in value of unrealized losses on equity interests
– 234,736.78 – 578,135.81
in real estate companies
+ Remeasurement gains/losses – financial assets*
Realized losses on forward exchange transactions – 126,985.06
Changes in value of unrealized losses on forward exchange transactions – 61,176.25 – 188,161.31
+ Remeasurement gains/losses – foreign currency positions* 274,568.37
Total recognized income for KanAm Spezial grundinvest Fonds 18,612,100.15
* cf. breakdown contained in the Statement of Changes in Fund Assets on page 62
For information on foreign currencies and exchange rates as of the reporting date of September 30, 2009, please see below.
The individual earnings components to a return of 5.0% p.a. (after deduc- The overall return can be derived in
presented in condensed form here led tion of fund costs). The BVI method detail from the following breakdown of
to changes in the unit value in the facilitates comparison between funds return ratios.
course of the fiscal year due to their with different distribution amounts by
expression in relation to the number of assuming that the distribution amount
units in circulation. Overall, the unit is reinvested at the applicable unit
value rose by EUR 0.19 in the fiscal price in each case, and that conse- The foreign currencies relate to the
year, from EUR 110.70 to EUR 110.89, quently investors participate in the following currencies at the following
plus the distribution of EUR 5.15 paid performance of the fund between the exchange rate as of the reporting date of
for the previous fiscal year; according date of distribution and the close of the September 30, 2009:
to the BVI definition, this corresponds fiscal year via the distribution amount. EUR 1.00 = CHF 1.50889 (Swiss francs)
KanAm Spezial grundinvest Fonds 57
Annual Report as of September 30, 2009 .................................... Facts and Figures
Return ratios as of September 30, 2009
Other Total
excluding direct Equity
France Netherlands Germany * investments interests** Total
in % in % in % in % in % in %
I. Properties
Gross return 7.0 6.7 5.7 6.5 1) 6.1 2) 6.5
Management costs – 0.4 – 0.5 – 0.6 – 0.4 1)
– 0.1 2) – 0.4
Net return 6.6 6.2 5.1 6.1 1) 6.0 2) 6.1
Changes in value 7.5 – 1.7 – 1.3 1.5 1)
– 0.1 2) 1.5
Foreign income taxes 0.0 – 0.4 – 0.2 – 0.2 1)
0.0 2)
– 0.2
Foreign deferred taxes – 4.0 – 0.2 – 0.6 –1.6 1) – 0.9 2) – 1.6
Return before borrowing costs 10.1 3.9 3.0 5.8 1)
5.0 2)
5.8
Return after borrowing costs 11.9 2.9 2.8 6.7 3) 4.9 4) 6.6
Exchange rate differences 0.0 0.0 0.1 0.0 3)
0.0 4)
0.0
Overall return 11.9 2.9 2.9 6.7 3) 4.9 4) 6.6
II. Liquidity 1.7 5)
III. Total fund return before fund costs 5.7 6)
Total fund return after fund costs (BVI method) 5.0
* Switzerland and Greece
** Luxembourg
1)
based on the average real estate assets
2)
based on the average real estate assets of the real estate companies in proportion to the equity interest held
3)
based on the average equity-financed real estate assets
4)
based on the average equity-financed real estate assets of the real estate companies
5)
generated with the average proportion of fund assets invested in the liquidity portfolio during the fiscal year
6)
based on the average fund assets
Changes in return ratios
September September September September
30, 2009 30, 2008 30, 2007 30, 2006
Total in % Total in % Total in % Total in %
I. Properties
Gross return 6.5 6.6 6.3 6.1
Management costs – 0.4 – 0.4 – 0.5 – 0.4
Net return 6.1 6.2 5.8 5.7
Changes in value 1.5 2.5 1.5 0.9
Foreign income taxes – 0.2 – 0.5 – 0.2 – 0.3
Foreign deferred taxes – 1.6 – 1.9 – 1.3 – 0.3
Return before borrowing costs 5.8 6.3 5.8 6.0
Return after borrowing costs 6.6 7.3 7.4 8.1
Exchange rate differences 0.0 0.0 0.0 0.1
Overall return 6.6 7.3 7.4 8.2
II. Liquidity 1.7 4.6 3.7 2.3
III. Total fund return before fund costs 5.7 7.0 7.0 7.2
Total fund return after fund costs (BVI method) 5.0 6.0 6.1 6.1
58 KanAm Spezial grundinvest Fonds
Notes to the return ratios for in the current fiscal year; these reduce equityfinanced real estate assets only.
KanAm Spezial grundinvest Fonds the net return by a total of 0.2 percent This ratio thus has a different basis –
as of September 30, 2009 age points. the capital employed by the fund rather
than total real estate assets. The rele
A gross return of 6.5% was generated Where properties are sold abroad, vant figure as of September 30, 2009
in the past fiscal year. This figure taxes are incurred on the disposal was 6.6%.
represents the ratio of income from gains realized (capital gains tax).
properties and other income to aver Adequate provisions have been cre The return on the fund’s liquidity port
age real estate assets. After deduction ated for these foreign deferred taxes. folio amounted to 1.7% in the fiscal
of management costs, ground rent, The provisions item amounts to 1.6%. year. This figure represents the ratio of
and other expenses, the net return interest income to the average invest
amounted to 6.1%. The abovementioned income and ments in the liquidity portfolio.
expense items are expressed in rela
In addition to this ongoing income, the tion to the average real estate assets. Together, the return from property and
net return for the year is influenced by After offsetting the items against each the return from the liquidity portfolio
changes in the value of the proper other, the return before borrowing comprise the total fund return before
ties. The proportion of the return costs amounted to 5.8%. fund costs. A return before fund costs
attributable to changes in value in the of 5.7% and a return after fund costs of
fiscal year amounted to 1.5%. The return after borrowing costs is 5.0% were generated, expressed as a
arrived at by deducting the borrowing percentage of the total average fund
The foreign income taxes item com costs from the return before borrowing assets in each case.
prises both taxes already paid and costs and expressing the resulting
provisions for anticipated income taxes figure as a proportion of the total
KanAm Spezial grundinvest Fonds 59
Annual Report as of September 30, 2009 .................................... Facts and Figures
Net asset information as of September 30, 2009
(average figures1))
in EUR million
Directly held properties 2) 283.6
Properties held via equity interests 2)
23.2
Total properties 2) 306.8
Liquidity 90.3
Loan volume 182.1
1)
The average figures are calculated on the basis of 13 end-of month values in the period from September 30, 2008 to September 30, 2009.
2)
equity-financed real estate assets
Information on changes in the value of the portfolio properties in the fiscal year
Other exclud Total direct Equity
France Netherlands ing Germany 1) 2) investments interests 3) Total
in EUR in EUR in EUR in EUR in EUR in EUR
Valuation information million million million million million million
Real estate assets
Market values (expert opinions) 188.9 209.9 122.3 521.1 24.0 545.1
Sustainable annual gross rental return
Rental values (expert opinions) 12.0 14.1 7.7 33.8 1.4 35.2
Positive changes in value according
to expert opinions 11.2 1.2 0.0 12.4 0.0 12.4
Other positive changes in value 4) 0.8 0.4 0.5 1.7 0.0 1.7
Negative changes in value according
to expert opinions 0.0 –2.1 –1.9 – 4.0 0.0 – 4.0
Other negative changes in value 4)
– 6.4 – 3.3 – 0.7 –10.4 – 0.2 – 10.6
Total changes in value according
to expert opinions 11.2 – 0.9 – 1.9 8.4 0.0 8.4
Total other changes in value – 5.6 – 2.9 – 0.2 – 8.7 – 0.2 – 8.9
Total changes in value 5.6 – 3.8 – 2.1 – 0.3 – 0.2 – 0.5
1)
Switzerland and Greece
2)
excluding exchange rate changes
3)
The value of the real estate company is recognized in proportion to the equity interest held.
4)
including provisions for capital gains tax
60 KanAm Spezial grundinvest Fonds
Leasing information as of September 30, 2009
(based on the annual rental income)
Other
excluding Total direct Equity
France Netherlands Germany 1) investments interests Total
Annual rental income in % in % in % in % in % in %
Office 89.3 91.2 73.8 86.8 95.0 87.2
Parking 7.0 8.2 7.3 7.6 5.0 7.4
Retail/catering 3.6 0.0 0.0 1.4 0.0 1.3
Hotel 0.0 0.0 17.9 3.7 0.0 3.6
Other 0.1 0.6 1.0 0.5 0.0 0.5
Total 100.0 100.0 100.0 100.0 100.0 100.0
Vacancy rate information as of September 30, 2009
(based on the gross target rental income p.a.)
Other
excluding Total direct Equity
France Netherlands Germany 1) investments interests Total
Vacancy rate in % in % in % in % in % in %
Office 0.0 0.0 0.0 0.0 0.0 0.0
Parking 0.0 0.0 0.0 0.0 0.0 0.0
Retail/catering 0.0 0.0 0.0 0.0 0.0 0.0
Hotel 0.0 0.0 0.0 0.0 0.0 0.0
Other 0.0 0.0 0.0 0.0 0.0 0.0
Leased rate 100.0 100.0 100.0 100.0 100.0 100.0
Expiring leases (as of September 30, 2009)
(based on the annual rental income)
Other
excluding Total direct Equity
France Netherlands Germany 1) investments interests Total
in % in % in % in % in % in %
up to the end of 2009 0.0 12.9 0.0 5.3 0.0 5.1
2010 0.0 0.0 2.0 0.4 0.0 0.4
2011 0.0 0.0 0.0 0.0 0.0 0.0
2012 0.0 40.9 0.0 16.9 0.0 16.2
2013 0.0 0.0 0.0 0.0 0.0 0.0
2014 0.6 11.5 0.0 5.0 100.0 9.0
2015 0.0 0.0 75.0 15.7 0.0 15.0
2016 49.9 0.0 5.0 19.9 0.0 19.0
2017 46.5 0.0 0.0 17.5 0.0 16.8
2018 0.5 34.7 0.0 14.6 0.0 14.0
2019 and longer 2.5 0.0 18.0 4.7 0.0 4.5
100.0 100.0 100.0 100.0 100.0 100.0
1)
Switzerland and Greece
KanAm Spezial grundinvest Fonds 61
Annual Report as of September 30, 2009 .................................... Facts and Figures
Statement of Changes in Fund Assets
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
EUR EUR
Fund assets as of October 1, 2008 352,709,543.38
Distribution for the previous year1) – 16,407,657.95
Equalization item for units issued/redeemed
up to the distribution date – 1,199,718.25
Cash inflow from sale of units 96,851,416.00
Cash outflow from redemption of units – 34,511,954.60
Cash inflow (net)2) 62,339,461.40
Net income from investment3) 19,103,828.90
Realized losses less unrealized changes in value in previous years4)
on forward exchange transactions
realized losses – 153,406.10
unrealized changes in value in previous years 26,421.04 – 126,985.06
Changes in value of unrealized gains5)
on properties 7,003,322.56
(of which denominated in foreign currency: EUR 140,009.27)
Changes in value of unrealized losses6)
on properties – 7,346,721.59
(of which denominated in foreign currency: EUR – 256,578.03)
on equity interests in real estate companies – 234,736.78
on forward exchange transactions – 61,176.25 – 7,642,634.62
Changes in exchange rates7) 274,568.37
Fund assets as of September 30, 2009 416,053,728.73
For information on foreign currencies and exchange rates as of the reporting date of September 30, 2009, please see page 57.
For the footnotes, please refer to the Notes to the Statement of Changes in Fund Assets on page 63.
62 KanAm Spezial grundinvest Fonds
Notes to the Statement of Changes in Fund Assets
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
The Statement of Changes in Fund the respective issuing or redemption 6) Changes in value of unrealized
Assets reconciles the fund assets for price by the number of units sold or re losses on properties, equity
the previous year with the fund assets deemed. interests in real estate compa-
at the end of the year under review – in nies, and forward exchange
other words, it explains the changes in 3) Net income from investment transactions
investors’ equity. KanAm Spezial grund
invest Fonds’ assets rose to EUR 416.1 The net income from investment is The net changes in the value of unreal
million in the fiscal year. The net given in the Income Statement on ized losses on properties and equity
income of EUR 18.6 million generated page 74 f. interests in real estate companies are
is presented in the table on page 57. the result of changes in market values
4) Realized losses on forward and adjustments in book values during
1) Distribution for the previous exchange transactions the fiscal year, the change to provi
year sions for anticipated taxes on future
Realized losses are the result of hedg disposal gains on properties or equity
An aggregate amount of EUR 17.6 mil ing transactions in Swiss francs (CHF) interests in real estate companies, and
lion was distributed for all units in exis closed out in the year under review, the change to provisions for mainte
tence on the distribution date (Decem taking into account the unrealized nance.
ber 19, 2008). The distribution therefore changes in value in previous years.
comprises the amount of EUR 16.4 The changes in the value of unrealized
million reported in the previous fiscal 5) Changes in value of unrealized losses on forward exchange trans
year, based on the number of units as gains on properties actions relate to open hedging trans
of September 30, 2008, plus the actions denominated in Swiss francs
amount due to the change in the num The net changes in the value of unreal (CHF).
ber of units in the period up to the dis ized gains on properties are the result
tribution date (December 19, 2008) of changes in market values and 7) Changes in exchange rates
(EUR 1.2 million). adjustments in book values during the
fiscal year and the change to provi The changes in exchange rates relate
2) Cash inflow (net) sions for anticipated taxes on future to gains resulting from changes in
disposal gains on properties. exchange rates during the fiscal year.
The cash inflow from the sale of units
and the cash outflow from the redemp
tion of units are calculated by multiplying
KanAm Spezial grundinvest Fonds 63
Annual Report as of September 30, 2009 .................................... Facts and Figures
Statement of Assets as of September 30, 2009
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Share of
fund assets
Assets EUR EUR in %
I. Properties
1. Commercial properties 521,090,157.33 125.3
(total in foreign currency: EUR 66,340,157.33)
II. Equity interests in real estate companies
1. Majority interests 16,295,106.13 3.9
III. Liquidity portfolio
1. Bank deposits 90,243,571.53 21.7
(total in foreign currency: EUR 902,769.25)
IV. Other assets
1. Receivables from real estate management 3,016,227.65
(of which denominated in foreign currency: EUR 291,658.83)
2. Receivables from real estate companies 8,000,000.00
3. Interest receivables 321,903.32
4. Miscellaneous assets 1,257,482.11 12,595,613.08 3.0
(of which denominated in foreign currency: EUR 45,190.69)
(total in foreign currency: EUR 336,849.52)
Total assets 640,224,448.07 153.9
Continued on page 66
For information on foreign currencies and exchange rates as of the reporting date of September 30, 2009, please see page 57.
64 KanAm Spezial grundinvest Fonds
Notes to the Statement of Assets
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Properties Equity interests in real estate Other assets
companies
The value of KanAm Spezial grund Receivables from real estate man-
invest Fonds’ directly held properties KanAm Spezial grundinvest Fonds agement amount to EUR 3.0 million
rose to EUR 521.1 million, primarily due continues to hold 99.9% of the shares and mainly consist of prepaid allocable
to the acquisition of two properties in a real estate company in Luxem- service charges. The service charges
(PULSAR in Paris and La Madeleine in bourg. The value of the equity interest for calendar year 2009 will be invoiced
Lille, both in France) and the transfer of fell slightly by EUR 0.2 million year-on- in the second half of 2010.
the risks and rewards of ownership of year to EUR 16.3 million.
the Holiday Inn Zurich Messe in Zurich- Receivables from real estate com-
Oerlikon, Switzerland, which was The real estate assets held by equity panies amounting to EUR 8.0 million
acquired in the previous fiscal year. interests account for 3.9% of fund comprise shareholder loans to the
assets. Luxembourg-based real estate com-
As of the reporting date of September pany.
30, 2009, the property portfolio com- Liquidity portfolio
prised a total of twelve directly held Interest receivables of EUR 0.3 mil-
commercial properties, five of which The bank deposits (EUR 90.2 million) lion resulted primarily from sharehold-
are in the Netherlands, four in France, are mainly invested in overnight money er loans.
two in Switzerland, and one in Greece. and fixed-term deposits (EUR 86.2 mil-
lion) and amount to a total of 21.7% of The miscellaneous assets item
The composition of the real estate the fund assets. (EUR 1.3 million) includes prepayments
portfolio and information on the indi- to property managers for which the
vidual properties is disclosed in KanAm At a total of EUR 69.4 million, cash final accounts still have to be prepared
Spezial grundinvest Fonds’ Property funds exceed the statutory minimum totaling EUR 0.6 million, and re-
Record (see page 68 f.). liquidity requirement of 5% of fund ceivables from third parties including
assets (= EUR 20.8 million). They are taxes (EUR 0.7 million).
required to guarantee orderly ongoing
management of the business, as well
as for the proposed distribution and
potential investments.
KanAm Spezial grundinvest Fonds 65
Annual Report as of September 30, 2009 .................................... Facts and Figures
Statement of Assets as of September 30, 2009
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Continued from page 64 Share of
fund assets
Liabilities and provisions EUR EUR in %
V. Liabilities
1. from loans 186,256,700.29
(of which denominated in foreign currency: EUR 51,006,700.29)
2. from real estate purchases and construction projects 665,100.91
3. from real estate management 6,593,784.10
(of which denominated in foreign currency: EUR 243,034.58)
4. Tenant deposits 1,006,437.80
5. Miscellaneous liabilities 1,447,444.11 195,969,467.21 47.1
(of which denominated in foreign currency: EUR 220,409.35)
(total in foreign currency: EUR 51,470,144.22)
VI. Provisions 28,201,252.13 6.8
(of which denominated in foreign currency: EUR 1,518,527.74)
Total liabilities and provisions 224,170,719.34 53.9
Total assets (from page 64) 640,224,448.07 153.9
VII. Fund assets 416,053,728.73 100.0
Unit value in EUR 110.89
Units in circulation 3,751,788
For information on foreign currencies and exchange rates as of the reporting date of September 30, 2009, please see page 57.
66 KanAm Spezial grundinvest Fonds
Notes to the Statement of Assets
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Liabilities Disposal gains incurred outside of There are currently no binding statu-
Germany are only taxed if a taxable tory provisions on how to calculate and
Liabilities from loans resulted from book profit is actually realized. Such recognize deferred taxes for open-
the financing of the purchase prices of taxes are thus generally of uncertain ended real estate funds.
the properties. They rose from timing and amount, as both the market
EUR 167.9 million at the beginning of situation and the bases for tax assess- Provisions for maintenance (including
the fiscal year to a total of EUR 186.3 ment may change at any time. improvements relating to changes of
million. tenants) amount to EUR 7.3 million. In
Taxes may be incurred either in the addition, provisions for income taxes
Liabilities from real estate pur case of directly held properties or in exist in the amount of EUR 0.9 million.
chases (EUR 0.7 million) resulted from the case of properties held via real Provisions totaling EUR 0.4 million
payment obligations in connection with estate companies. were set up for audit, tax advisory, and
the acquisition of the following proper- publication costs. In addition, provi-
ties: Helex Building B, Athens, Greece All properties were included in the sions for outstanding invoices exist in
(EUR 0.6 million) and PULSAR, Paris, calculation. The measurement basis the amount of EUR 1.0 million.
France (EUR 0.1 million). for the deferred tax expense is the
difference between the market value Fund assets
Liabilities from real estate manage and the carrying value of the property
ment comprise advance payments of for tax purposes in each case. The Fund assets amount to EUR 416.1 mil-
rent and service charges. current country-specific tax rates are lion. 884,755 units have been issued
then applied to this amount. Since the and 318,920 units redeemed since
Liabilities from tenant deposits calendar year in which the disposal October 1, 2008. With 3,751,788 units
totaling EUR 1.0 million exist to French gain occurred has not yet ended, the in circulation, this results in a unit value
tenants (EUR 0.7 million) and a Greek actual tax expense will depend on of EUR 110.89 at the reporting date.
tenant (EUR 0.3 million). other, future tax-relevant factors.
Performance
Miscellaneous liabilities amounting A risk provision of EUR 18.6 million
to EUR 1.4 million primarily relate to was set up as of the reporting date of The value of one KanAm Spezial grund-
accrued loan interest (EUR 0.6 million), September 30, 2009; this was based invest Fonds unit changed from
claims for remuneration by the invest- on the country-specific tax rates and EUR 110.70 to EUR 110.89 in the period
ment company (EUR 0.2 million) and was classified as a provision. It covers from September 30, 2008 to Septem-
the custodian bank (EUR 0.2 million), the expected taxes if directly held ber 30, 2009. Taking into account the
tax liabilities (EUR 0.2 million), and properties were to be sold based on distribution of EUR 5.15 on December
liabilities from open forward exchange current market values. 19, 2008, this produces net income of
transactions (EUR 0.1 million). EUR 5.34 per unit. This corresponds to
In the case of equity interests in real a performance of 5.0%, calculated in
Provisions estate companies, capital gains taxes accordance with the BVI method.
of EUR 0.8 million were recognized as
Provisions amounting to EUR 28.2 other factors affecting the value of the
million were set up mainly for capital equity interest and therefore deducted
gains tax on the disposal of directly from it.
held properties.
KanAm Spezial grundinvest Fonds 67
Annual Report as of September 30, 2009 .................................... Facts and Figures
Property Record as of September 30, 2009
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Transfer of Total
risks and Year con- Size of floor
Type of Type of rewards of structed/ property space Appoint-
No. Location of property property1) use2) ownership renovated (sqm) (sqm) ments3)
I. Directly held properties in eurozone countries
1. France
1 AVIVA C
92270 Paris /Bois-Colombes, O 95%,
70, Avenue de l’Europe, Building C C P 5% 03 /2005 2005 6,226 13,081 A, E
2 Le Dionys
93200 Paris /Saint-Denis,
260 – 264, Avenue du Président Wilson / O 92%,
Rue Francis de Pressensé C P 8% 04 /2008 2005 4,176 14,311 A, E
3 La Madeleine
59110 Lille /La Madeleine,
99, Avenue de la République /Rue Paul O 86%,
Doumer C P 14% 10 /2008 2004 2,950 6,513 A, E
4 PULSAR
75008 Paris, O 60%, 1868 /1997 –
2, Rue de la Pépinière C R/C 40% 05 /2009 2007 336 1,810 A, E
2. Netherlands
5 Margriet Toren
1101 BR Amsterdam Zuidoost, O 94%,
Haaksbergweg 75 C, H P 6% 05 /2005 1994 5,154 9,082 A, E
6 Nieuwe Vaart
1018 Amsterdam City, O 95%, 1879 /1975 /
Nieuwe Vaart 5 –9 C P 5% 09 /2005 1999 2,296 6,112 A, E
7 Zilveren Toren
2595 AK The Hague, O 93%,
Prinses Beatrixlaan 13–17 C P 7% 03 /2006 1969 /2000 3,833 27,2167) A, E
8 Ruby Point
1101 BW Amsterdam Zuidoost, O 91%,
Hullenbergweg 1– 3 C, E P 9% 07 /2008 1987 /2004 3,965 5,217 A, E, At
9 Laan op Zuid O 86%,
3072 AR Rotterdam, P 12%,
Laan op Zuid 391– 469 C M 2% 09 /2008 2008 3,200 24,270 A, E
1)
C = Commercial property 3)
A = Air conditioning 4)
Currency position translated at the closing-date rates as of September 30, 2009
H = Heritable building right E = Freight/passenger elevator 5)
The information on the forecast rental income is not covered by the auditors’
PO = Part-ownership of the property OG = Open gallery report.
EL = External louvers 6)
Property acquired during the period under review or transfer of risks and rewards
2)
O = Office/archive At = Atrium of ownership during the period under review.
P = Parking F = Fitness center/fitness room
R/C = Retail/catering CC = Conference center
M = Miscellaneous
Ho = Hotel
68 KanAm Spezial grundinvest Fonds
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Expiring leases
(measured in
terms of current Forecast Appraised Appraised
rental income) Rental income rental income rental value market value
Leased rate as of Oct. 1, 2009 Oct. 1, 2008 Oct. 1, 2009 (by the Expert (by the Expert
September 30, 20099) – Sept. 30, 20109) – Sept. 30, 20094) 9) – Sept. 30, 20104) 5) 9) Committee)4) 9) Committee)4) 9)
in % in % in EUR thousand in EUR thousand in EUR thousand in EUR thousand
100.0 0.0 5,192.3* 5,192.3* 5,192.3 81.9
100.0 0.0 4,367.1* 4,367.1* 4,367.1 69.3
100.0 0.0 1,296.86) * 1,380.0* 1,380.0 19.9
100.0 0.0 377.46) 1,084.1 1,080.0 17.8
100.0 100.0 1,617.7* 1,617.7* 1,617.7 22.9
100.0 0.0 1,515.9* 1,515.9* 1,515.9 25.9
100.0 0.0 5,380.3* 5,380.3* 5,380.3 88.2
100.0 0.0 1,026.8 * 1,026.8* 1,026.8 14.9
100.0 0.0 4,510.0 * 4,510.0* 4,510.0 58.0
7)
Plus part-ownership of a neighboring parking garage with 211 parking spaces; * Property with fewer than five tenants or for which 75% of the rental income is
acquired 03/2006; constructed 2003 generated by a single tenant; the actual and forecast rental income has not been
8)
Part-ownership of 4,689/10,000 of the property published to protect tenants’ interests. Instead, the appraised rental value estab-
9)
The information on the individual properties is dependent on the size of the equity lished by the Expert Committee has been used.
interest held.
KanAm Spezial grundinvest Fonds 69
Annual Report as of September 30, 2009 .................................... Facts and Figures
Property Record as of September 30, 2009
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Transfer
of risks Total
and Year con- Size of floor
Type of Type of rewards of structed/ property space Appoint-
No. Location of property property1) use2) ownership renovated (sqm) (sqm) ments3)
3. Greece
10 Helex Building B
(O.T. 51 /75) Athens, 110 Athinon
Avenue /Pipinelies Street /Polykratous O 92%,
Street /Akademia Platonos C, PO P 8% 05 /2007 2007 7,9038) 12,315 A, E
II. Directly held properties in countries with other currencies
1. Switzerland
11 Le Lumion O 86%,
1218 Geneva /Grand-Saconnex P 11%,
Rue François Peyrot 10 –14 C M 3% 01 /2006 2004 8,442 5,498 A, E
12 Holiday Inn Zurich Messe
8050 Zurich-Oerlikon,
Wallisellenstrasse 48 C, H Ho 100% 03 /2009 2009 3,700 11,042 A, E, F, CC
III. Properties in eurozone countries held via real estate companies
1. Luxembourg
13 Centre Cloche d’Or
2530 Luxembourg, O 95%, A, E, EL,
10, Rue Henri Schnadt C P 5% 11 /2005 2005 3,033 4,326 OG
Cloche d’Or S.A., 5, Rue Guillaume Kroll, 1882 Luxembourg (99.908306% equity interest)
Company’s equity: EUR 1,867,627.34; shareholder loan: EUR 8,000,000.00
1)
C = Commercial property 3)
A = Air conditioning 4)
Currency position translated at the closing-date rates as of September 30, 2009
H = Heritable building right E = Freight/passenger elevator 5)
The information on the forecast rental income is not covered by the auditors’
PO = Part-ownership of the property OG = Open gallery report.
2)
O = Office/archive EL = External louvers 6)
Property acquired during the period under review or transfer of risks and rewards
P = Parking At = Atrium of ownership during the period under review.
R/C = Retail/catering F = Fitness center/fitness room
M = Miscellaneous CC = Conference center
Ho = Hotel
70 KanAm Spezial grundinvest Fonds
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Expiring leases
(measured in
terms of current Forecast Appraised Appraised
Leased rate rental income) Rental income rental income rental value market value
as of Oct. 1, 2009 Oct. 1, 2008 Oct. 1, 2009 (by the Expert (by the Expert
September 30, 2009 9) – Sept. 30, 2010 9) – Sept. 30, 2009 4) 9) – Sept. 30, 2010 4) 5) 9) Committee) 4) 9) Committee)4) 9)
in % in % in EUR thousand in EUR thousand in EUR thousand in EUR thousand
100.0 0.0 3,986.1* 3,986.1* 3,986.1 56.0
100.0 0.0 2,309.1 2,336.9 2,263.3 42.7
100.0 0.0 792.66)* 1,491.2* 1,491.2 23.7
100.0 0.0 1,419.6* 1,419.6* 1,419.6 24.0
7)
Plus part-ownership of a neighboring parking garage with 211 parking spaces; * Property with fewer than five tenants or for which 75% of the rental income is
acquired 03/2006; constructed 2003 generated by a single tenant; the actual and forecast rental income has not been
8)
Part-ownership of 4,689/10,000 of the property published to protect tenants’ interests. Instead, the appraised rental value estab-
9)
The information on the individual properties is dependent on the size of the equity lished by the Expert Committee has been used.
interest held.
KanAm Spezial grundinvest Fonds 71
Annual Report as of September 30, 2009 .................................... Facts and Figures
Record of Acquisitions in the Period under Review
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Acquisition in the period under review; transfer of risks and rewards of ownership by September 30, 2009
Transfer of risks Purchase Total invest-
Date of and rewards price ment costs Market value1)
Location of property acquisition of ownership in EUR million in EUR million in EUR million
I. Directly held properties in eurozone countries
France
PULSAR
75008 Paris,
2, Rue de la Pépinière 05 /2009 05 /2009 16.2 17.5 17.8
La Madeleine
59110 Lille, La Madeleine, 99, Avenue de
la République /Rue Paul Doumer 10 /2008 10 /2008 18.5 19.4 19.9
Acquisition before the period under review; transfer of risks and rewards of ownership by September 30, 2009
Transfer of risks Purchase Total invest-
Date of and rewards price ment costs Market value1)
Location of property acquisition of ownership in EUR million in EUR million in EUR million
Directly held properties in countries with other currencies2)
Switzerland
Holiday Inn Zurich Messe,
8050 Zurich-Oerlikon,
Wallisellenstrasse 48 04 /2008 03 /2009 22.0 22.7 23.2
1)
according to the expert opinion prepared at the time of the transfer of risks and rewards of ownership
2)
The exchange rate on the date of the transfer to the portfolio is decisive for the exchange rate used.
72 KanAm Spezial grundinvest Fonds
Hedging Transactions and Liquidity Portfolio as of September 30, 2009
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Currency hedging transactions
Investments in foreign currencies are hedged using forward currency sales.
Market price Market price1) Preliminary
Sale Reporting date result
EUR EUR EUR
Open positions CHF 24.10 million 16,076,585.51 16,140,042.04 – 63,456.53
Total 16,076,585.51 16,140,042.04 – 63,456.53
Market price Market price 1) Preliminary
Purchase Reporting date result
EUR EUR EUR
Open positions CHF 2.30 million 1,522,221.12 1,524,501.40 2,280.28
Total 1,522,221.12 1,524,501.40 2,280.28
Market price Market price Preliminary
Sale at maturity result
EUR EUR EUR
Open positions CHF 12.90 million 8,313,052.60 8,466,458.70 – 153,406.10
Total 8,313,052.60 8,466,458.70 – 153,406.10
1)
currency forward rate as of September 30, 2009
CHF = Swiss francs
Total liquidity in EUR
Overnight money and
Bank deposits fixed-term deposits
4.0 million 86.2 million
(4.4%) (95.6%)
KanAm Spezial grundinvest Fonds 73
Annual Report as of September 30, 2009 .................................... Facts and Figures
Income Statement
for the Period from October 1, 2008 to September 30, 2009
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
EUR EUR
I. Income
1. Income from properties 30,208,828.12
(of which denominated in foreign currency: EUR 2,908,021.46)
2. Income from equity interests in real estate companies 1,431,226.32
3. Income from liquidity portfolio
3.1 Income from bank deposits 1,514,734.30
(of which denominated in foreign currency: EUR 1,026.44)
4. Other income 283,017.95
(of which denominated in foreign currency: EUR 7,746.61)
Total income 33,437,806.69
II. Expenses
1. Management costs
1.1 Operating costs 1,259,837.73
(of which denominated in foreign currency: EUR 209,012.07)
1.2 Maintenance costs 284,451.92
(of which denominated in foreign currency: EUR 4,148.24)
1.3 Property management costs* 277,758.13
(of which denominated in foreign currency: EUR 29,326.19)
1.4 Other costs 148,373.88 1,970,421.66
(of which denominated in foreign currency: EUR 11,033.34)
2. Ground rent 34,075.21
(of which denominated in foreign currency: EUR 34,075.21)
3. Interest expenses 7,984,412.03
(of which denominated in foreign currency: EUR 1,560,493.47)
4. Foreign taxes 1,052,904.00
5. Costs of managing the investment fund
5.1 Remuneration of the fund management 2,336,978.59
5.2 Custodian bank fee 183,964.66
5.3 Remuneration of experts 83,146.27
5.4 Other expenses in accordance with section 12 of the BVB (Special Fund Rules) 688,075.37 3,292,164.89
Total expenses 14,333,977.79
III. Net income from investment 19,103,828.90
IV. Equalization paid 532,751.60
V. Net income from investment plus equalization paid 19,636,580.50
Total expense ratio (TER)
excl. performance-based remuneration = 0.75%
incl. performance-based remuneration = 0.75%
* No own expenses in accordance with section 12(7) of the Special Fund Rules were levied in the fiscal year.
For information on foreign currencies and exchange rates as of the reporting date of September 30, 2009, please see page 57.
Information on costs in accordance with section 41(5) and (6) of the “Investmentgesetz”:
The investment company does not receive any reimbursements of the fees and expenses paid to the custodian bank and third parties from the investment fund assets.
The investment company pays regular brokerage fees (“trail commission”) to selected brokers such as banks from the management fee paid to it.
KanAm Spezial grundinvest Fonds does not hold any investment units.
74 KanAm Spezial grundinvest Fonds
Notes to the Income Statement
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Income Interest expenses totaling EUR 8.0 mil- Equalization paid
lion relate to the loans taken out for the
Income from properties (EUR 30.2 mil- directly held properties. The equalization paid item amounted
lion) was generated by the directly held to EUR 0.5 million and consists of the
properties. Foreign taxes relate to income taxes distributable accrued income con-
on income generated abroad. tained in the unit price on the acquisi-
Income from equity interests in real tion or selling date concerned; in the
estate companies (EUR 1.4 million) re- The costs of managing the invest- case of a cash inflow the income is
lates to interest on shareholder loans to ment fund totaling EUR 3.3 million added to this item, while in the case of
the Cloche d’Or S.A. real estate com- comprise the remuneration of the fund a cash outflow it is deducted.
pany. management (EUR 2.3 million), the cus-
todian bank fee (EUR 0.2 million), the Net income from investment plus
Income from the liquidity portfolio of remuneration of experts (EUR 0.1 million), equalization paid
EUR 1.5 million is attributable to over- and Annual Report, advisory, auditing,
night and fixed-term investments. and tax advisory costs as well as ac- The net income from investment of
count management costs (EUR 0.7 mil- EUR 19.1 million represents the net
Other income of EUR 0.3 million pri- lion in total). amount of income and expenses gen-
marily consists of the reversal of provi- erated during the period under review.
sions. The fund management fee was paid in After adjustment for the equalization
the form of the contractually agreed re- paid item, the net income from in-
Expenses muneration of 0.4% per year of the av- vestment plus equalization paid
erage value of the fund assets, which is amounted to EUR 19.6 million (previous
Management costs amounting to calculated using the values at the end year: EUR 17.6 million).
EUR 2.0 million include non-allocable of each month. Loans are not included
operating costs (EUR 1.3 million), main- when calculating the value of the in- Total expense ratio (TER)
tenance costs (EUR 0.3 million), man- vestment fund. In addition, the invest-
agement costs for local third-party ment company received income from The total expense ratio (TER) is the
property managers (EUR 0.3 million), construction and purchase fees total- ratio of total expenses to average fund
and non-deductible input tax of ing EUR 0.7 million, which are included assets, expressed in percent. It in-
EUR 0.1 million. in the acquisition costs. The one-off cludes the following items: the remu-
fee of up to 2% of the value calculated neration of the fund management, the
Ground rent (EUR 34 thousand) re- by the Expert Committee payable on custodian bank fee, the remuneration
lates to the Holiday Inn Zurich Messe acquisition of a property or real estate of experts, and other expenses in ac-
property. company was not levied in full. Instead, cordance with section 12 of the BVB
only 1.10% was levied on average. (excluding transaction and finance
costs), and amounts to 0.75%.
KanAm Spezial grundinvest Fonds 75
Annual Report as of September 30, 2009 .................................... Facts and Figures
Calculation of the Distribution
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total Per unit
EUR EUR EUR
Net income from investment 19,103,828.90
Equalization paid 532,751.60
Net income from investment plus equalization paid 19,636,580.50 5.23
Carried forward from previous year 6,095,560.63
Adjustment to profit carried forward1) 1,082,522.63 7,178,083.26 1.92
Amount available for distribution 26,814,663.76 7.15
Carried forward to new account 7,492,955.56 2.00
Distribution 19,321,708.20 5.15
1)
The value of an existing profit brought forward would fall per unit if the number of units in circulation increased. The adjustment to profit carried forward counteracts this
dilutive effect at the expense of existing investors.
EUR 7,492,955.56 will be carried EUR 5.15 per unit will be distributed.
forward to new account. Given 3,751,788 units in circulation,
this results in a distribution of
EUR 19,321,708.20.
76 KanAm Spezial grundinvest Fonds
Auditors’ Report
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
In accordance with section 44(5) of the system and the evidence supporting
“Investmentgesetz” (InvG – German the disclosures in the annual report are
Investment Act), we have audited the examined primarily on a test basis
annual report of KanAm Spezial grund- within the framework of the audit. The
invest Fonds for the fiscal year from audit includes assessing the account-
October 1, 2008 to September 30, ing principles used for the annual
2009. The preparation of the annual report and significant estimates made
report in accordance with the InvG is by management. We believe that our
the responsibility of the management audit provides a reasonable basis for
of the investment company. Our respon- our opinion.
sibility is to express an opinion on this
annual report based on our audit. Our audit has not led to any reserva-
tions.
We have conducted our audit in accor-
dance with section 44(5) of the InvG In our opinion, based on the findings of
and generally accepted standards for our audit, the annual report complies
the audit of financial statements pro- with the legal requirements.
mulgated by the “Institut der Wirtschaft-
sprüfer” (IDW). Those standards re- Nuremberg, November 25, 2009
quire that we plan and perform the
audit such that misstatements materi- Deutsche Baurevision Aktiengesell-
ally affecting the annual report are schaft Wirtschaftsprüfungsgesellschaft
detected with reasonable assurance.
Knowledge of the management of the
investment fund and evaluations of
possible misstatements are taken into (Reiß) (ppa. Dirnaichner)
account in the determination of audit Wirtschaftsprüfer Wirtschaftsprüfer
procedures. The effectiveness of the
accounting-related internal control
KanAm Spezial grundinvest Fonds 77
Annual Report as of September 30, 2009 .................................... Facts and Figures
Tax Information
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Summary of important tax regu- As the tax withheld is generally defini- Units held as business assets are
lations for investors (law appli- tive (flat tax), income from capital in- treated as operating income for tax
cable as of January 1, 2009) vestments does not, as a rule, have to purposes. Tax legislation requires a
be disclosed in the investor’s income differentiated approach to the income
The following information on tax tax return. When withholding the tax, components in order to calculate the
regulations only applies to investors the custodian, as a matter of principle, amount of taxable income or income
with unlimited tax liability in Germany. offsets any losses and credits foreign subject to investment income tax.
Foreign investors are advised to withholding taxes.
contact their tax advisor prior to Units held as private assets
acquiring units in the investment fund However, the tax withheld is not (German tax residents)
described in the Sales Prospectus in definitive if, among other things, the
order to clarify the potential tax con- investor’s personal tax rate is lower Domestic rental income, interest
sequences of such an investment in than the 25% flat tax rate. In this case, and similar income, foreign divi-
their respective countries of resi- income from capital investments may dends (particularly from real estate
dence on an individual basis. be disclosed in the income tax return. corporations), and gains from the
The tax office will then apply the low- sale of domestic real estate within
As a special purpose fund, the invest- er personal tax rate and count the tax ten years of acquisition
ment fund is exempt from corporation withheld towards the investor’s tax
tax and trade tax. For units held as liability (“Günstigerprüfung” – most 25% tax is withheld on domestic rent-
private assets, however, the taxable favorable tax treatment). al income, interest and similar in-
income from the investment fund is come, foreign dividends and gains
treated as income from capital invest- If no tax has been withheld on income from the sale of domestic real estate
ments and is subject to income tax if from capital investments (for example within ten years of acquisition that are
this income, together with the inves- because a gain on the sale of fund distributed or retained by the invest-
tor’s other investment income, ex- units is generated in a foreign securi- ment fund in the case of domestic
ceeds the annual lump-sum savings ties account), this income must be custody (plus the solidarity surcharge
allowance of EUR 801 (for single per- disclosed in the tax return. This in- and church tax, if applicable).
sons or married couples assessed come from capital investments is then
separately) or EUR 1,602 (for married also subject to the 25% flat tax rate or No tax needs to be withheld if the
couples assessed jointly). to the lower personal tax rate in the investor is a German tax resident and
course of the assessment. submits an exemption instruction,
25% tax is withheld on income from provided that the taxable income
capital investments (plus the solidar- Even if tax has been withheld and the components do not exceed EUR 801
ity surcharge and church tax, if appli- investor has a higher personal tax for single persons or EUR 1,602 for
cable). Income from capital invest- rate, disclosures on income from married couples assessed jointly.
ments also includes the income capital investments may have to be
distributed by the investment fund, made if, for example, extraordinary The same also applies if a non-
distribution-equivalent income, and personal expenses or special person- assessment certificate is submitted
interim profits, as well as gains from al deductions (e.g., donations) are or if foreign investors furnish proof of
the purchase and sale of fund units if claimed in the investor’s income tax their nonresident status for tax
these were or are acquired after return. purposes.
December 31, 2008.1)
1)
Gains on the disposal of fund units held by private investors that were acquired prior to January 1, 2009 are tax-free, provided that the period between acquisition and
d
isposal exceeds one year.
78 KanAm Spezial grundinvest Fonds
If domestic investors hold the units of Gains from the sale of domestic Gains from the sale of securi-
an investment fund that has been and foreign real estate acquired ties, gains from forward trans-
classified for tax purposes as a dis- more than ten years previously actions, and income from option
tributing fund in a German securities premiums
account at the investment company Gains from the sale of domestic and
or a credit institution (custody), the foreign real estate not falling within Gains from the sale of shares, equity-
respective custodian, as the paying the ten-year holding period that are equivalent profit participation rights
agent, will not withhold any tax pro- generated at the investment fund and investment units, gains from for-
vided that, prior to the specified dis- level are always tax-free for the inves- ward transactions, and income from
tribution date, it receives either an tor. option premiums generated at the
official exemption instruction for a investment fund level are not recog-
sufficient amount or a non-assessment Foreign rental income and gains nized at the level of the investor un-
certificate issued by the tax office for from the sale of foreign real less they are distributed. Moreover,
a maximum of three years. In this estate within ten years of acqui- gains from the sale of the capital
case, the entire distribution is credit- sition claims listed in section 1(3) sentence 3
ed to the investor without deduction. number 1 letters a) to f) of the InvStG
Foreign rental income and gains from are not recognized at the level of the
If investors fail to submit an exemp- the sale of foreign real estate in re- investor if they are not distributed.
tion instruction or non-assessment spect of which Germany has waived
certificate, or fail to submit it in good taxation under a double taxation These include the following capital
time, on application they will receive agreement (exemption method) are claims:
a tax certificate from their custodian also tax-free (general rule). The tax-
showing the tax withheld and remit- free income also has no effect on the a) capital claims that have an issue
ted and the solidarity surcharge. applicable tax rate (no “Progressions- yield,
Investors can then offset the tax with- vorbehalt” – application of the pro-
held against their tax liability in the gression clause). b) “normal” bonds and unsecuritized
course of their personal income tax receivables with a fixed coupon as
assessment. If, exceptionally, the tax credit method well as down-rating bonds, float-
has been agreed in the relevant double ers, and reverse floaters,
If units in distributing investment taxation agreement or no double taxa-
funds are not held in a custody tion agreement has been concluded, c) risk certificates that track a share
account and the investor presents the information on the treatment of price or a published index for a
coupons to a German credit institu- gains from the sale of domestic real large number of shares 1:1,
tion (self-custody), tax is withheld at estate within ten years of acquisition
25% plus the German solidarity applies mutatis mutandis. The taxes d) equity-linked bonds, exchangeable
surcharge. paid in the relevant countries of origin bonds, and convertible bonds,
may be offset against German income
Subject to certain conditions, divi- tax where appropriate, insofar as the e) flat income bonds and profit par-
dends paid by foreign real estate taxes paid have not already been ticipation rights classified as debt
corporations may be fully tax-free, as claimed as income-related expenses instruments, and
qualifying intercompany dividends. at the level of the investment fund.
f) bonds cum warrants.
KanAm Spezial grundinvest Fonds 79
Annual Report as of September 30, 2009 .................................... Facts and Figures
If gains from the sale of the above- Investors are immediately reimbursed the assessment period (tax year) in
mentioned securities/capital claims, the 25% tax withheld (plus the soli- which the investment fund’s fiscal
gains from forward transactions, and darity surcharge) if the units are held year ends, or in which the distribution
income from option premiums are in custody by the investment compa- for the investment fund’s fiscal year
distributed, they are taxable; 25% tax ny or a German credit institution and for which the negative taxable income
is withheld if the units are held in a an exemption instruction for a suffi- has been offset at investment fund
domestic custody account (plus the cient amount or a non-assessment level takes place. It is not possible for
solidarity surcharge and church tax, if certificate has been submitted there. the negative income to be taken into
applicable). However, distributed Otherwise, investors can offset the account in earlier income tax assess-
gains from the sale of securities and 25% tax withheld (plus the solidarity ments for investors.
gains from forward transactions are surcharge) against their personal in-
tax-free if the securities – at the in- come tax liability by supplying a tax Return of capital distributions
vestment fund level – were acquired certificate from their custodian.
before January 1, 2009 or the forward Return of capital distributions (e.g., in
transactions were entered into before Income from equity interests in the form of development project in-
January 1, 2009. domestic and foreign real es- terest) are not taxable.
tate partnerships
Gains from the sale of capital claims However, return of capital distribu-
that are not included in the above list Income from equity interests in do- tions that investors receive during
must be treated in the same way as mestic and foreign real estate part- their period of ownership must be
interest for tax purposes (see page nerships must be reported for tax added to the taxable net income from
78). purposes at investment fund level at the sale of fund units, i.e., they in-
the end of the fiscal year of the part- crease the taxable profit.
Domestic dividends (particular- nership concerned. It must be mea-
ly from real estate corpora- sured in accordance with general tax Disposal gains at investor level
tions) principles.
If units in an investment fund that
Domestic dividends paid by the (real Negative taxable income were acquired after December 31,
estate) corporations that are distrib- 2008 are sold by a private investor,
uted or reinvested by the investment If, after negative income has been the disposal gain is subject to the
fund are taxable at the investor level. offset against similar positive income 25% flat tax. If the units are held in a
at investment fund level, a negative domestic securities account, the cus-
25% tax (plus the solidarity surcharge) overall amount is produced, this is todian withholds the 25% tax. The
is withheld by the investment com- carried forward at investment fund 25% tax (plus the solidarity surcharge
pany on domestic dividends on distri- level. It can be offset against similar and church tax, if applicable) need
bution or retention. Moreover, the future positive taxable income at in- not be withheld if a sufficient exemp-
custodian concerned takes any appli- vestment fund level in subsequent tion instruction or a non-assessment
cations for the retention of church tax periods. Negative taxable income certificate is submitted.
that have been received into account may not be allocated directly to in-
when making distributions. vestors. This means that such nega- If units in an investment fund that
tive amounts will only be reflected in were acquired before January 1, 2009
investors’ income tax assessments in are resold by a private investor within
80 KanAm Spezial grundinvest Fonds
twelve months of purchase (taxable The investment company publishes paid have not already been claimed as
period), any disposal gains are tax- the gains from real estate on each income-related expenses at the level of
able as income from private dispos- valuation date as a percentage of the the investment fund.
als. If the total gains from private dis- value of the investment unit.
posals during a calendar year amount Gains from the sale of domestic
to less than EUR 600, these gains are Units held as business assets and foreign real estate
tax-free (exemption limit). If the ex- (German tax residents)
emption limit is exceeded, the total Retained gains at fund level from the
private disposal gains are taxable. Domestic rental income, inter- disposal of domestic and foreign real
est and similar income estate sold more than ten years after
Disposal gains realized outside the acquisition of the property are of no
taxable period for units acquired be- Domestic rental income and interest significance for tax purposes at the in-
fore January 1, 2009 are tax-free for and similar income are generally tax- vestor level. Gains only become tax-
private investors. able for investors . This applies regard-
1)
able upon distribution, whereby Ger-
less of whether this income is reinvest- many generally does not tax foreign
In calculating the disposal gains, the ed or distributed. gains (exemption due to a double taxa-
interim profits at the time of acquisi- tion agreement).
tion must be deducted from the ac- Tax need only not be withheld, or with-
quisition costs, and the interim profits held tax can only be refunded, upon Gains from the sale of domestic and
at the time of disposal must be de- presentation of a corresponding non- foreign real estate within the ten-year
ducted from the disposal price, so assessment certificate. Otherwise, the holding period, whether retained or
that interim profits not taxed twice investor receives a tax certificate docu- distributed, are taxable at the investor
(see page 85). The retained income menting the tax withheld. level. Gains from the sale of domestic
that the investor has already taxed real estate are fully taxable.
must also be deducted from the dis- Foreign rental income
posal price, so that double taxation is Germany generally exempts gains from
also avoided in this respect. Germany generally exempts rental in- the sale of foreign real estate from tax-
come from foreign real estate from ation (exemption due to a double taxa-
Gains from the sale of fund units ac- taxation (exemption due to a double tion agreement). However, investors
quired after December 31, 2008 are taxation agreement). However, inves- that are not incorporated entities are
tax-free insofar as they relate to in- tors that are not incorporated entities subject to the progression clause.
come that is tax-free under double are subject to the progression clause.
taxation agreements, that accrued to If, exceptionally, the tax credit method
the fund during the holding period, If, exceptionally, the tax credit method has been agreed in the relevant double
and that has not yet been recorded at has been agreed in the relevant double taxation agreement or no double taxa-
the investor level (gain from real es- taxation agreement or no double taxa- tion agreement has been concluded,
tate for the proportionate period of tion agreement has been concluded, income tax paid in the relevant coun-
ownership). income tax paid in the relevant coun- tries of origin may be offset against
tries of origin may be offset against German income tax or corporation tax
German income tax or corporation tax where appropriate, insofar as the taxes
where appropriate, insofar as the taxes
Pursuant to section 2(2a) of the InvStG, the taxable interest must be taken into account in relation to the earnings stripping rule in accordance with section 4h of the EStG.
1)
KanAm Spezial grundinvest Fonds 81
Annual Report as of September 30, 2009 .................................... Facts and Figures
paid have not already been claimed as e) flat income bonds and profit par- Domestic and foreign dividends
income-related expenses at the level of ticipation rights classified as debt (particularly from real estate
the investment fund. instruments, and corporations)
Tax need only not be withheld, or with- f) bonds cum warrants. Dividends paid by domestic and for-
held can only be refunded, upon pre- eign real estate corporations that are
sentation of a corresponding non- If these gains are distributed, they are distributed or retained on units held as
assessment certificate. Otherwise, the taxable at the investor level. Gains business assets are tax-free 2) for incor-
investor receives a tax certificate docu- from the sale of shares are fully tax- 1)
porated entities with the exception
menting the tax withheld. free for investors that are incorporat- of dividends in accordance with the
ed entities, or 40% tax-free for other “REIT-Gesetz” (German REIT Act). In
Gains from the sale of securities, business investors such as sole pro- the case of investors subject to income
gains from forward transactions, prietorships (partial income method). tax, 40% of this income is tax-free (par-
and income from option premiums By contrast, disposal gains from tial income method).
bonds/capital claims, gains from for-
Gains from the sale of shares, equity- ward transactions, and income from Domestic dividends are subject to
equivalent profit participation rights option premiums are fully taxable. withholding tax (25% investment in-
and investment units, gains from for- come tax plus the solidarity sur-
ward transactions, and income from Income from the sale of capital claims charge).
option premiums are of no signifi- that are not included in the previous list
cance for tax purposes to investors if must be treated in the same way as in- Foreign dividends are generally subject
they are retained. Moreover, gains terest for tax purposes (see page 81). to withholding tax (25% investment in-
from the sale of the capital claims come tax plus the solidarity surcharge).
listed below are not recognized at the Distributed disposal gains on securi- However, the paying agent does not
level of the investor if they are not dis- ties, distributed gains on forward withhold any tax in particular if the in-
tributed: transactions, and distributed income vestor is a corporation with unlimited
from option premiums are subject to tax liability (whereby corporations as
a) capital claims that have an issue withholding tax (25% investment in- defined by section 1(1) no. 4 and 5 of
yield, come tax plus the solidarity sur- the “Körperschaftsteuergesetz” (KStG
charge). This does not apply to gains – German Corporation Tax Act) must
b) “normal” bonds and unsecuritized from the sale of securities purchased submit a certificate from their tax office
receivables with a fixed coupon as before January 1, 2009 and to gains to the paying agent) or the foreign divi-
well as down-rating bonds, float- from forward transactions entered into dends represent income of a domestic
ers, and reverse floaters, before January 1, 2009. However, the business and this is declared to the
paying agent does not withhold any paying agent by the creditor of the in-
c) risk certificates that track a share tax in particular if the investor is a cor- vestment income in an official form.
price or a published index for a poration with unlimited tax liability or if
large number of shares 1:1, the investment income represents op- Subject to certain conditions, divi-
erating income of a domestic business dends paid by foreign (real estate) cor-
d) equity-linked bonds, exchangeable and this is declared to the paying porations may be fully tax-free, as
bonds, and convertible bonds, agent by the creditor of the investment qualifying intercompany dividends. In
income in an official form. this case, investors subject to income
tax are subject only to the progression
clause.
5% of the disposal gains from shares are considered as non-deductible business expenses for incorporated entities and are therefore taxable.
1)
2)
5% of the dividends are considered as non-deductible business expenses for incorporated entities and are therefore taxable.
82 KanAm Spezial grundinvest Fonds
Income from equity interests in Return of capital distributions The investment company publishes the
domestic and foreign real estate gains from shares on each valuation
partnerships Return of capital distributions (e.g., in date as a percentage of the value of the
the form of development project inter- investment unit.
Income from equity interests in domes- est) are not taxable. For investors re-
tic and foreign real estate partnerships quired to prepare financial statements, Non-residents for tax purposes
must be reported for tax purposes at this means that the return of capital
investment fund level at the end of the distributions must be recognized in in- If a non-resident for tax purposes holds
fiscal year of the partnership con- come in the financial accounts and an units in a distributing investment fund
cerned. It must be measured in accor- offsetting liability must be expensed in in a securities account at a German
dance with general tax principles. the tax accounts, thus effectively re- custodian (custody), no tax is withheld
ducing the historical acquisition cost on interest and similar income, dispos-
Negative taxable income without affecting tax. al gains on securities, gains on forward
transactions, and foreign dividends if
If, after negative income has been off- Disposal gains at investor level the investor furnishes proof of his or
set against similar positive income at her non-resident status for tax purpos-
investment fund level, a negative over- Gains from the sale of units held as es. The extent to which tax withheld on
all amount is produced, this is carried business assets are tax-free for busi- domestic dividends may be offset or
forward at investment fund level. It can ness investors, provided that these reimbursed for a foreign investor de-
be offset against similar future positive consist of foreign rental income that pends on the double taxation agree-
taxable income at investment fund level has not yet accrued or been deemed to ment between the investor’s country of
in subsequent periods. Negative tax- have accrued, and realized or unreal- residence and the Federal Republic of
able income may not be allocated di- ized investment fund gains from foreign Germany. If the custodian concerned is
rectly to investors. This means that real estate, insofar as Germany has unaware of the investor’s non-resident
such negative amounts will only be re- waived taxation (gains from real es- status or if proof of this status is not
flected in investors’ income or corpora- tate). furnished in good time, the foreign in-
tion tax assessments in the assess- vestor is required to apply for reim-
ment period (tax year) in which the The investment company publishes the bursement of the tax withheld in accor-
investment fund’s fiscal year ends, or in gains from real estate on each valua- dance with section 37(2) of the
which the distribution for the invest- tion date as a percentage of the value “Abgabenordnung” (AO – German Tax
ment fund’s fiscal year for which the of the investment unit. Code) to the tax office at the place of
negative taxable income has been off- business of the custodian.
set at investment fund level takes place. Furthermore, gains from the sale of
It is not possible for the negative in- units held as business assets are tax- Solidarity surcharge
come to be taken into account in earlier free 1) for incorporated entities if they
income or corporation tax assess- consist of dividends that have not yet ac- A 5.5% solidarity surcharge is levied on
ments for investors. crued or been deemed to have accrued, the withheld tax to be remitted when
and realized or unrealized investment the investment fund distributes or re-
fund gains from domestic and foreign invests income. The solidarity surcharge
real estate corporations (gains from can be offset against the investor’s in-
shares). 40% of these gains on dispos- come tax or corporation tax liability.
al are tax-free for sole proprietorships.
1)
5% of the tax-free disposal gains are considered as non-deductible business expenses for incorporated entities and are therefore taxable.
KanAm Spezial grundinvest Fonds 83
Annual Report as of September 30, 2009 .................................... Facts and Figures
If no tax is withheld – for example, be- The investment company may deduct year in which the amended statement
cause a sufficient exemption instruc- the creditable withholding tax in the became non-contestable. The amend-
tion, a non-assessment certificate, or same way as an income-related ex- ed statement is then allocated to inves-
proof of non-resident status for tax pense at the level of the investment tors for tax purposes at the end of this
purposes has been submitted – no sol- fund. In this case, the foreign withhold- fiscal year or on the date on which the
idarity surcharge need be remitted. ing tax cannot be offset or deducted at distribution for this fiscal year is made.
investor level.
Church tax This means that the financial effects –
If the investment company does not ex- which may be either positive or nega-
If income tax is already levied via the ercise its option to deduct the foreign tive – of correcting errors impact those
tax withheld by a German custodian withholding tax at investment fund lev- investors holding units in the invest-
(withholding agent), the church tax pay- el, the creditable withholding tax will be ment fund at the time at which the
able on this is levied as a surcharge to recognized as reducing the tax to be errors are corrected.
the tax withheld in accordance with the withheld.
church tax rate for the religious com- Taxation of interim profits
munity to which the person subject to Equalization paid
church tax belongs. To this end, per- Interim profits consist of income con-
sons subject to church tax must inform Those portions of the issuing price at- tained in the issuing or redemption
the withholding agent in a written ap- tributable to income for issued units price for interest received or accrued
plication that they are a member of a that are eligible for inclusion in the dis- as well as gains from the sale of capital
particular religion. In the application, tribution (equalization paid procedure) claims not listed in section 1(3) sen-
married couples must also declare the are to be treated in the same way for tence 3 number 1 letters a) to f) of the
proportion of the spouses’ entire in- taxation purposes as the income to InvStG that have not yet been distrib-
vestment income constituted by the which these portions of the issuing uted or retained by the fund and are
investment income attributable to each price are attributable. therefore not yet taxable for the inves-
spouse, so that the church tax can be tor (roughly comparable to accrued
allocated, withheld, and remitted on Separate determination of profits, profits on fixed-income securities). In-
this basis. If no allocation ratio is indi- external audits terim profits generated by the invest-
cated, the allocation is made on a per ment fund are subject to income tax
capita basis. The bases for tax assessment calcu- when units are redeemed or sold by
lated at investment fund level must be German tax residents. 25% tax is with-
The deductibility of church tax as a determined separately in each case. held on interim profits (plus solidarity
special personal deduction is already For this purpose, the investment com- surcharge and church tax, if applica-
recognized as reducing the tax burden pany must submit a statement illustrat- ble).
when the tax is withheld. ing the determination of the bases
for tax assessment (“Feststellungs- Interim profits paid on the purchase of
Foreign withholding tax erklärung”) to the responsible tax of- units can be deducted as negative in-
fice. Changes to the statements – for come for income tax purposes in the
Withholding tax on the investment example, as a result of an external tax year of payment. They are already rec-
fund’s foreign income is retained in audit (section 11(3) of the InvStG) by the ognized as reducing the tax burden
some cases in the country of origin. tax authorities – take effect in the fiscal when the tax is withheld. If the interim
84 KanAm Spezial grundinvest Fonds
profits are not published, 6% of the The investment company endeavors to Directive with a number of third-party
payment made in connection with the disclose all information available to it states (and in particular with Switzer-
redemption or sale of the investment about the bases for tax assessment. land, Liechtenstein, the Channel Is-
unit must be recognized as interim lands, Monaco, and Andorra).
profits per annum. However, no guarantee can be given
that the notification requirement will be Under these agreements, interest in-
Interim profits may also be ascertained fulfilled, especially if the investment come that is credited by a German
regularly from the account and income fund has acquired target funds and credit institution (which to this extent
statements issued by the banks. these do not fulfill the notification re- acts as a paying agent) to a natural per-
quirements for tax purposes. In this son living in another country in Europe
Effects of the merging of invest- case, the distributions and the interim or in certain third-party states is re-
ment funds profits of the relevant target fund and ported by the German credit institution
70% of the increase in value of the rel- as a matter of principle to the
The transfer of all assets of an invest- evant target fund in the most recent Bundeszentralamt für Steuern (Federal
ment fund to another investment fund calendar year (but at least 6% of the Central Office of Taxation) and by the
in accordance with section 40 of the redemption price) are classified as tax- latter ultimately to the foreign tax of-
InvG does not result in the realization of able income at the level of the invest- fices in the person’s country of resi-
hidden reserves either at investor level ment fund. dence.
or at the level of the investment funds
concerned, i.e., this process is tax- Furthermore, the investment company Correspondingly, interest income re-
neutral. endeavors to disclose all information ceived by natural persons in Germany
regarding the bases for tax assessment from foreign credit institutions located
Classification as transparent, not covered by section 5(1) InvStG in other European countries or certain
semi-transparent, and non- (such as, in particular, gains from third-party states is ultimately reported
transparent funds for tax purpos- shares, gains from real estate, and in- by the foreign credit institutions to the
es terim profits). German tax office at the person’s place
of residence. Alternatively, certain for-
The taxation principles outlined above EU Savings Tax Directive/ eign states retain withholding taxes
(transparent taxation) only apply if all German Interest Information that can be offset in Germany.
bases for tax assessment within the Regulation
meaning of section 5(1) of the InvStG In concrete terms, therefore, this af-
are disclosed (notification requirement The “Zinsinformationsverordnung” (ZIV fects private investors resident in the
for tax purposes). This also applies to – German Interest Information Regula- European Union and in the third-party
the extent that the investment fund has tion), which implements Council Direc- countries that have acceded to the Di-
acquired units in other funds within tive 2003 48/EC of June 3, 2003, OJ EU rective who maintain securities ac-
Germany and in investment stock cor- no. L 157 p. 38, is designed to ensure counts or current accounts in another
porations with variable capital, units in the effective cross-border taxation of EU country and generate interest in-
EU investment funds, and units in for- interest income accruing to natural come.
eign investment funds that are not EU persons within the territory of the Euro-
investment fund units (target funds pean Union. The European Union has Among other places, Luxembourg and
within the meaning of section 10 of the concluded agreements that largely Switzerland have undertaken to retain
InvStG) and that these comply with correspond to the EU Savings Tax a withholding tax of 20% on interest in-
their tax notification requirements. come (from July 1, 2011: 35%). Inves-
tors receive a certificate as part of the
KanAm Spezial grundinvest Fonds 85
Annual Report as of September 30, 2009 .................................... Facts and Figures
tax documentation that they can use to Property purchase tax a return with or inform the French tax
offset the withholding tax deducted authorities yourself, if you held less
when filing their income tax returns. The sale of units in the investment fund than 5% of the Fund on January 1, and
does not give rise to any property pur this is the only investment you have in
Alternatively, private investors can elect chase tax. French property.
to be exempted from having the tax
withheld abroad by issuing a voluntary French 3% tax If, on January 1, 2009, your equity in
disclosure authorization for their inter terest amounted to or exceeded 5% or
est income to the foreign credit institu Since January 1, 2008, real estate if you held additional properties in
tions; this permits the institution con funds have been subject to a special France either directly or indirectly, you
cerned to refrain from withholding tax French tax (known as the “French 3% may be liable for tax in your own right
and instead to report the income to the tax”), which is levied annually on the on account of your investment in French
tax authorities specified in the legisla market value of properties located in real estate and you must ensure that
tion. France. The French law provides for the you are exempted from taxation by
exemption from the 3% tax for French providing the French tax authorities
According to the ZIV, the investment real estate funds and comparable for with your own return.
company must specify for each do eign funds. In the opinion of the French
mestic and foreign fund whether it is tax authorities, German real estate However, various groups of investors
subject to the ZIV (“in scope”) or not funds are not comparable in principle may be covered by general exemp
(“out of scope”). with French real estate funds, meaning tions; for example, natural persons and
that they are not exempt in principle listed companies are exempted from
The ZIV contains two material invest from the 3% tax. the 3% tax. In these cases, no separate
ment thresholds to assist in this as return need be submitted.
sessment. In order to be exempt from this tax, the
French tax authorities are of the opin For more information on the potential
If a maximum of 15% of the fund assets ion that the fund must issue an annual obligation to submit a return, we rec
consist of receivables as defined by the return specifying its French properties ommend that you contact a French tax
ZIV, the paying agents, which ultimately on January 1 of each year and disclos advisor.
refer to the data reported by the invest ing the names of those unit holders
ment company, do not have to submit who held 1% or more of the fund as of Notice:
reports to the Bundeszentralamt für January 1 of each year. Thus, investors
Steuern. Otherwise, exceeding the who held at least 35,206 units in KanAm The information concerning taxation
15% threshold triggers a requirement Spezial grundinvest Fonds as of Jan is based on the legal position as it is
on the part of the paying agents to dis uary 1, 2009 must be named. known to stand at present. It is in-
close the interest portion of the divi tended for those persons with un-
dend to the Bundeszentralamt für So that the fund can comply with its limited liability regarding for Ger-
Steuern. obligation to submit a return and thus man income or corporation tax.
avoid the French 3% tax being levied, However, no assurance can be given
If the 40% threshold is exceeded, the we ask that you send us a written dec that the tax treatment will not change
interest portion contained in the re laration consenting to the disclosure of as a result of legislation, court rul-
demption or sale of the fund units must your name, address, and the size of ings, or decrees issued by the tax
be disclosed. If the fund is a distribut your interest to the French tax authori authorities.
ing fund, the interest portion contained ties if your interest in KanAm Spezial
in the dividend must also be reported grundinvest Fonds amounted to or ex
to the Bundeszentralamt für Steuern. If ceeded 1% on January 1, 2009.
the fund is an accumulating fund, a dis
closure is logically only made when This disclosure has no financial reper
fund units are redeemed or sold. cussions, nor does it require you to file
86 KanAm Spezial grundinvest Fonds
Information on Bases of Taxation to be Disclosed to Investors
Disclosures on Corresponding disclosures
distributed income on distribution-equivalent
Mandatory disclosure in accordance with section 5(1) of the InvStG (no. 1) income (no. 2) Total
(German Investment Tax Act) EUR EUR EUR
a) Distribution amount incl. foreign withholding tax/amount retained 1) (Distribution) (Retention)
for unit certificates held as private assets 5.1500 0.0839 5.2339
for unit certificates held as business assets (section 3 no. 40 of the EStG) 5.1500 0.0839 5.2339
for unit certificates held as business assets (section 8b of the KStG) 5.1500 0.0839 5.2339
for unit certificates held as business assets (section 8b(7+8) of the KStG) 5.1500 0.0839 5.2339
(cash distribution) (5.1500)
plus distribution-equivalent income from previous years included in the distribution,
broken down by fiscal year 2) 0.0377
b) Income distributed (to 4 decimal places) 3) 3.47873a) 0.1004 3.5791
c) Included in the distribution
aa) repealed 2)
bb) tax-free disposal gains as defined in section 2(3) no. 1 sentence 1 of the InvStG
in the version applicable on December 31, 2008 0.0000 0.0000 0.0000
cc) income as defined in section 3 no. 40 of the EStG (100%) 4) 0.0000 0.0000 0.0000
dd) income as defined in section 8b(1) of the KStG 5) 0.0000 0.0000 0.0000
ee) disposal gains as defined in section 3 no. 40 of the EStG (100%) 4) 0.0000 0.0000 0.0000
ff) disposal gains as defined in section 8b(2) of the KStG 6) 0.0000 0.0000 0.0000
gg) income as defined in section 2(3) no. 1 sentence 2 of the InvStG, in the version
applicable on December 31, 2008 if not investment income as defined in section
20 of the EStG 0.0000 0.0000 0.0000
hh) tax-free disposal gains as defined in section 2(3) no. 2 of the InvStG 0.0000 0.0000 0.0000
ii) income as defined in section 4(1) of the InvStG
for unit certificates held as private assets 7) 2.4470 0.0803 2.5273
for unit certificates held as business assets (section 3 no. 40 of the EStG) 7) 2.4470 0.0803 2.5273
for unit certificates held as business assets (section 8b of the KStG) 7) 2.4470 0.0803 2.5273
for unit certificates held as business assets (section 8b(7+8) of the KStG) 7) 2.4470 0.0803 2.5273
of which relating to income in accordance with section 3 no. 40 of the EStG
0.0000 0.0000 0.0000
and section 8b of the KStG
of which relating to income not regulated by section 3 no. 40 of the EStG and
2.4470 0.0803 2.5273
section 8b of the KStG
jj) income as defined in section 4(2) of the InvStG for which no deduction
under section 4(4) of the InvStG has been made
for unit certificates held as private assets 0.0000 0.0000 0.0000
for unit certificates held as business assets (section 3 no. 40 of the EStG) 0.0000 0.0000 0.0000
for unit certificates held as business assets (section 8b of the KStG) 0.0000 0.0000 0.0000
for unit certificates held as business assets (section 8b(7+8) of the KStG) 0.0000 0.0000 0.0000
of which relating to income in accordance with section 3 no. 40 of the EStG and
0.0000 0.0000 0.0000
section 8b of the KStG
of which relating to income not regulated by section 3 no. 40 of the EStG and
0.0000 0.0000 0.0000
section 8b of the KStG
kk) income as defined in section 4(2) of the InvStG which is considered
under a double taxation agreement as founding an entitlement to a tax credit 0.0000 0.0000 0.0000
of which relating to income in accordance with section 3 no. 40 of the EStG and
0.0000 0.0000 0.0000
section 8b of the KStG
of which relating to income not regulated by section 3 no. 40 of the EStG and
0.0000 0.0000 0.0000
section 8b of the KStG
II) income as defined in section 2(2a) of the InvStG 0.6906 0.0112 0.7018
KanAm Spezial grundinvest Fonds 87
Annual Report as of September 30, 2009 .................................... Facts and Figures
Disclosures on Corresponding disclosures
distributed income on distribution-equivalent
Mandatory disclosure in accordance with section 5(1) of the InvStG (no. 1) income (no. 2) Total
(German Investment Tax Act) EUR EUR EUR
d) Portion of distribution founding an entitlement to the crediting or reimbursement
of withholding tax on dividend income as defined in
section 7(1 and 2) of the InvStG
for unit certificates held as private assets 8) 1.0318 0.0202 1.0520
for unit certificates held as business assets (section 3 no. 40 of the EStG) 8) 1.0318 0.0202 1.0520
for unit certificates held as business assets (section 8b of the KStG) 8) 1.0318 0.0202 1.0520
for unit certificates held as business assets (section 8b(7+8) of the KStG) 8) 1.0318 0.0202 1.0520
section 7(3) of the InvStG
for unit certificates held as private assets 0.0000 0.0000 0.0000
for unit certificates held as business assets (section 3 no. 40 of the EStG) 0.0000 0.0000 0.0000
for unit certificates held as business assets (section 8b of the KStG) 0.0000 0.0000 0.0000
for unit certificates held as business assets (section 8b(7+8) of the KStG) 0.0000 0.0000 0.0000
e) Amount of withholding tax on dividend income to be credited or reimbursed as defined in
section 7(1 and 2) of the InvStG
for unit certificates held as private assets 9) 0.2579 0.0050 0.2629
for unit certificates held as business assets (section 3 no. 40 of the EStG) 9) 0.2579 0.0050 0.2629
for unit certificates held as business assets (section 8b of the KStG) 9) 0.2579 0.0050 0.2629
für Anteilscheine im Betriebsvermögen (§ 8b Abs. 7+8 KStG) 9) 0.2579 0.0050 0.2629
section 7(3) of the InvStG
for unit certificates held as private assets 0.0000 0.0000 0.0000
for unit certificates held as business assets (section 3 no. 40 of the EStG) 0.0000 0.0000 0.0000
for unit certificates held as business assets (section 8b of the KStG) 0.0000 0.0000 0.0000
for unit certificates held as business assets (section 8b(7+8) of the KStG) 0.0000 0.0000 0.0000
f) Amount of foreign taxes payable on the income contained
in the distributed income as defined in section 4(2) of the InvStG and
aa) that is creditable in accordance with section 4(2) and (3) of the InvStG in
conjunction with section 34c(1) of the EStG or a double taxation agreement, if no
deduction was made in accordance with section 4(4) of the InvStG
for unit certificates held as private assets 0.0000 0.0000 0.0000
for unit certificates held as business assets (section 3 no. 40 of the EStG) 0.0000 0.0000 0.0000
for unit certificates held as business assets (section 8b of the KStG) 0.0000 0.0000 0.0000
for unit certificates held as business assets (section 8b(7+8) of the KStG) 0.0000 0.0000 0.0000
of which relating to income in accordance with section 3 no. 40 of the EStG and
0.0000 0.0000 0.0000
section 8b of the KStG
of which relating to income not regulated by section 3 no. 40 of the EStG and
0.0000 0.0000 0.0000
section 8b of the KStG
bb) that is deductible in accordance with section 4(2) and (3) of the InvStG in
conjunction with section 34c(3) of the EStG, if no deduction was made in
accordance with section 4(4) of the InvStG
for unit certificates held as private assets 0.0000 0.0000 0.0000
for unit certificates held as business assets (section 3 no. 40 of the EStG) 0.0000 0.0000 0.0000
for unit certificates held as business assets (section 8b of the KStG) 0.0000 0.0000 0.0000
for unit certificates held as business assets (section 8b(7+8) of the KStG) 0.0000 0.0000 0.0000
of which relating to income in accordance with section 3 no. 40 of the EStG and
0.0000 0.0000 0.0000
section 8b of the KStG
of which relating to income not regulated by section 3 no. 40 of the EStG and
0.0000 0.0000 0.0000
section 8b of the KStG
cc) that is deemed to have been paid under a double taxation agreement and is
creditable in accordance with section 4(2) and (3) of the InvStG in conjunction
0.0000 0.0000 0.0000
with this agreement.
of which relating to income in accordance with section 3 no. 40 of the EStG and
0.0000 0.0000 0.0000
section 8b of the KStG
of which relating to income not regulated by section 3 no. 40 of the EStG and
0.0000 0.0000 0.0000
section 8b of the KStG
g) Amount of depreciation or depletion as defined
in section 3(3) sentence 1 of the InvStG 10) 1.8166 0.0501 1.8667
88 KanAm Spezial grundinvest Fonds
Notes to the Bases for Taxation
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
1) The distribution amount includes 4) The stated amount corresponds to 6) The stated amount corresponds to
creditable and deductible foreign 100% of the income subject to the disposal gains (net amount) to
withholding taxes. section 3 no. 40 of the EStG minus be exempted in accordance with
100% of the income-related or busi- section 8b(2) of the KStG. Section
2) The amount disclosed is the income ness expenses attributable to sec- 8b(3) of the KStG must be applied
calculated in accordance with tax tion 3c(2) of the EStG. The amount to this amount. The amount in-
provisions. The amount determined includes taxable income but not cludes taxable income but not tax-
in line with investment law provi- tax-free income in accordance with free income in accordance with
sions is EUR 153,406.10, or section 4(1) of the InvStG. Insofar as section 4(1) of the InvStG. Insofar as
EUR 0.0409 per certificate. This income is already covered by sec- income is already covered by sec-
income comes entirely from fiscal tion 4(1) of the InvStG, it is not tion 4(1) of the InvStG, it is not in-
year 2007/2008. included again under section 5(1) cluded again under section 5(1)
sentence 1 no. 1 c), cc) to ff) of the sentence 1 no. 1 c), cc) to ff) of the
3) The stated amount includes the InvStG to avoid the exemption at InvStG to avoid the exemption at
taxable income of the investment the level of the investor being the level of the investor being
fund calculated in accordance with applied twice. applied twice.
section 3 of the InvStG. This amount
includes income that is fully taxable 5) The stated amount corresponds to 7) The amount stated is the amount of
for investors as well as income that 100% of the income subject to sec- income to be exempted from taxa-
comes under section 2(2) and (3) of tion 8b(1) of the KStG minus 100% tion under section 4(1) of the
the InvStG and under section 4(1) of the income-related or business InvStG.
and (2) of the InvStG. However, expenses attributable to section
distribution-equivalent income from 3c(1) of the EStG. The prohibition 8) The stated amounts correspond to
previous years contained in the on the application of section 3c(1) the basis of calculation to be ap-
distribution is not included. of the EStG by section 8b(5) of the plied for investment income tax.
KStG is overruled by section 3(3) Exceptions may apply to specific
3a) Non-deductible income-related ex- no. 4 of the InvStG. The amount investors in individual cases (for
penses as defined in section 3(3) includes taxable income but not example due to non-assessment
sentence 2 no. 2 of the InvStG tax-free income in accordance with certificates).
(EUR 0.0202 per unit) are included section 4(1) of the InvStG. Insofar as
in their entirety in the distribution- income is already covered by sec- 9) When held in custody
equivalent income. See also the tion 4(1) of the InvStG, it is not
Circular from the Federal Ministry included again under section 5(1) 10) The stated amount includes the
of Finance (BMF) dated August 18, sentence 1 no. 1 c), cc) to ff) of the depreciation factored into the cal-
2009, margin note 60. InvStG to avoid the exemption at culation of taxable income held as
the level of the investor being business assets, and the deprecia-
applied twice. tion factored into the calculation of
tax-free income subject to the
progression clause.
KanAm Spezial grundinvest Fonds 89
Annual Report as of September 30, 2009 .................................... Facts and Figures
Interim Profits Subject to Income Tax
from October 1, 2008 to September 30, 2009
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Pricing date Per unit Pricing date Per unit Pricing date Per unit Pricing date Per unit Pricing date Per unit Pricing date Per unit
as from EUR as from EUR as from EUR as from EUR as from EUR as from EUR
10/01/2008 1.36 11/29/2008 1.60 02/04/2009 0.34 04/03/2009 0.43 06/09/2009 0.55 08/07/2009 0.64
10/02/2008 1.37 12/02/2008 1.60 02/05/2009 0.34 04/04/2009 0.43 06/10/2009 0.55 08/08/2009 0.64
10/03/2008 1.37 12/03/2008 1.61 02/06/2009 0.34 04/07/2009 0.43 06/11/2009 0.55 08/11/2009 0.64
10/07/2008 1.37 12/04/2008 1.61 02/07/2009 0.34 04/08/2009 0.43 06/13/2009 0.55 08/12/2009 0.64
10/08/2008 1.39 12/05/2008 1.62 02/10/2009 0.35 04/09/2009 0.43 06/16/2009 0.56 08/13/2009 0.64
10/09/2008 1.39 12/06/2008 1.62 02/11/2009 0.35 04/10/2009 0.43 06/17/2009 0.56 08/14/2009 0.64
10/10/2008 1.39 12/09/2008 1.62 02/12/2009 0.36 04/15/2009 0.43 06/18/2009 0.56 08/15/2009 0.64
10/11/2008 1.42 12/10/2008 1.63 02/13/2009 0.36 04/16/2009 0.44 06/19/2009 0.56 08/18/2009 0.64
10/14/2008 1.43 12/11/2008 1.64 02/14/2009 0.36 04/17/2009 0.44 06/20/2009 0.56 08/19/2009 0.65
10/15/2008 1.44 12/12/2008 1.64 02/17/2009 0.36 04/18/2009 0.44 06/23/2009 0.57 08/20/2009 0.65
10/16/2008 1.36 12/13/2008 1.64 02/18/2009 0.37 04/21/2009 0.44 06/24/2009 0.57 08/21/2009 0.65
10/17/2008 1.44 12/16/2008 1.64 02/19/2009 0.37 04/22/2009 0.49 06/25/2009 0.57 08/22/2009 0.65
10/18/2008 1.45 12/17/2008 1.65 02/20/2009 0.37 04/23/2009 0.49 06/26/2009 0.57 08/25/2009 0.65
10/21/2008 1.45 12/18/2008 1.65 02/21/2009 0.37 04/24/2009 0.50 06/27/2009 0.57 08/26/2009 0.65
10/22/2008 1.46 12/19/2008 0.25 02/24/2009 0.38 04/25/2009 0.50 06/30/2009 0.57 08/27/2009 0.66
10/23/2008 1.46 12/20/2008 0.25 02/25/2009 0.38 04/28/2009 0.50 07/01/2009 0.58 08/28/2009 0.64
10/24/2008 1.47 12/23/2008 0.26 02/26/2009 0.38 04/29/2009 0.50 07/02/2009 0.58 08/29/2009 0.65
10/25/2008 1.47 12/24/2008 0.26 02/27/2009 0.39 04/30/2009 0.51 07/03/2009 0.58 09/01/2009 0.65
10/28/2008 1.47 12/30/2008 0.26 02/28/2009 0.39 05/01/2009 0.51 07/04/2009 0.58 09/02/2009 0.65
10/29/2008 1.48 12/31/2008 0.28 03/03/2009 0.39 05/05/2009 0.51 07/07/2009 0.58 09/03/2009 0.65
10/30/2008 1.49 01/03/2009 0.28 03/04/2009 0.39 05/06/2009 0.51 07/08/2009 0.59 09/04/2009 0.65
10/31/2008 1.49 01/06/2009 0.29 03/05/2009 0.40 05/07/2009 0.51 07/09/2009 0.59 09/05/2009 0.65
11/01/2008 1.50 01/07/2009 0.30 03/06/2009 0.40 05/08/2009 0.52 07/10/2009 0.59 09/08/2009 0.65
11/04/2008 1.50 01/08/2009 0.30 03/07/2009 0.40 05/09/2009 0.52 07/11/2009 0.59 09/09/2009 0.66
11/05/2008 1.51 01/09/2009 0.30 03/10/2009 0.40 05/12/2009 0.52 07/14/2009 0.59 09/10/2009 0.66
11/06/2008 1.52 01/10/2009 0.30 03/11/2009 0.41 05/13/2009 0.52 07/15/2009 0.60 09/11/2009 0.66
11/07/2008 1.52 01/13/2009 0.31 03/12/2009 0.41 05/14/2009 0.52 07/16/2009 0.60 09/12/2009 0.66
11/08/2008 1.52 01/14/2009 0.31 03/13/2009 0.40 05/15/2009 0.52 07/17/2009 0.60 09/15/2009 0.66
11/11/2008 1.53 01/15/2009 0.32 03/14/2009 0.41 05/16/2009 0.52 07/18/2009 0.60 09/16/2009 0.66
11/12/2008 1.54 01/16/2009 0.31 03/17/2009 0.41 05/19/2009 0.53 07/21/2009 0.60 09/17/2009 0.66
11/13/2008 1.54 01/17/2009 0.32 03/18/2009 0.41 05/20/2009 0.53 07/22/2009 0.61 09/18/2009 0.66
11/14/2008 1.55 01/20/2009 0.32 03/19/2009 0.42 05/21/2009 0.53 07/23/2009 0.61 09/19/2009 0.66
11/15/2008 1.55 01/21/2009 0.33 03/20/2009 0.42 05/23/2009 0.53 07/24/2009 0.61 09/22/2009 0.67
11/18/2008 1.55 01/22/2009 0.31 03/21/2009 0.42 05/26/2009 0.53 07/25/2009 0.61 09/23/2009 0.67
11/19/2008 1.56 01/23/2009 0.32 03/24/2009 0.42 05/27/2009 0.54 07/28/2009 0.61 09/24/2009 0.67
11/20/2008 1.57 01/24/2009 0.31 03/25/2009 0.42 05/28/2009 0.54 07/29/2009 0.61 09/25/2009 0.67
11/21/2008 1.57 01/27/2009 0.31 03/26/2009 0.43 05/29/2009 0.54 07/30/2009 0.62 09/26/2009 0.67
11/22/2008 1.57 01/28/2009 0.32 03/27/2009 0.42 05/30/2009 0.54 07/31/2009 0.62 09/29/2009 0.67
11/25/2008 1.58 01/29/2009 0.32 03/28/2009 0.42 06/03/2009 0.54 08/01/2009 0.62 09/30/2009 0.68
11/26/2008 1.59 01/30/2009 0.33 03/31/2009 0.42 06/04/2009 0.55 08/04/2009 0.62
11/27/2008 1.59 01/31/2009 0.33 04/01/2009 0.43 06/05/2009 0.55 08/05/2009 0.63
11/28/2008 1.59 02/03/2009 0.33 04/02/2009 0.43 06/06/2009 0.55 08/06/2009 0.63
90 KanAm Spezial grundinvest Fonds
Gains from Real Estate and Equities
from October 1, 2008 to September 30, 2009
........................................................................................................................................................................................................................
Gain from Gain from Gain from Gain from Gain from Gain from Gain from Gain from Gain from Gain from
real estate equities real estate equities real estate equities real estate equities real estate equities
Date in % in % Date in % in % Date in % in % Date in % in % Date in % in %
10/01/2008 9.74 1.48 12/12/2008 10.52 1.38 02/28/2009 10.17 1.44 05/15/2009 10.65 1.42 07/30/2009 11.46 1.42
10/02/2008 9.74 1.48 12/13/2008 10.53 1.38 03/03/2009 10.18 1.44 05/16/2009 10.66 1.42 07/31/2009 11.47 1.42
10/03/2008 9.75 1.48 12/16/2008 10.54 1.38 03/04/2009 10.21 1.44 05/19/2009 10.67 1.42 08/01/2009 11.48 1.42
10/07/2008 9.76 1.48 12/17/2008 10.54 1.38 03/05/2009 10.22 1.44 05/20/2009 10.70 1.42 08/04/2009 11.49 1.42
10/08/2008 9.80 1.48 12/18/2008 10.53 1.40 03/06/2009 10.23 1.44 05/21/2009 10.71 1.42 08/05/2009 11.53 1.42
10/09/2008 9.80 1.48 12/19/2008 9.37 1.46 03/07/2009 10.24 1.44 05/23/2009 10.71 1.43 08/06/2009 11.54 1.42
10/10/2008 9.81 1.48 12/20/2008 9.38 1.46 03/10/2009 10.25 1.44 05/26/2009 10.73 1.43 08/07/2009 11.55 1.42
10/11/2008 10.08 1.39 12/23/2008 9.40 1.46 03/11/2009 10.28 1.44 05/27/2009 10.76 1.43 08/08/2009 11.56 1.42
10/14/2008 10.07 1.39 12/24/2008 9.45 1.46 03/12/2009 10.29 1.44 05/28/2009 10.78 1.43 08/11/2009 11.57 1.42
10/15/2008 10.10 1.39 12/30/2008 9.47 1.46 03/13/2009 10.30 1.44 05/29/2009 10.79 1.43 08/12/2009 11.60 1.41
10/16/2008 10.11 1.39 12/31/2008 9.47 1.46 03/14/2009 10.31 1.44 05/30/2009 10.80 1.43 08/13/2009 11.61 1.41
10/17/2008 10.12 1.39 01/03/2009 9.48 1.46 03/17/2009 10.32 1.44 06/03/2009 10.81 1.43 08/14/2009 11.62 1.41
10/18/2008 10.13 1.39 01/06/2009 9.52 1.46 03/18/2009 10.35 1.43 06/04/2009 10.85 1.43 08/15/2009 11.64 1.41
10/21/2008 10.09 1.39 01/07/2009 9.55 1.46 03/19/2009 10.36 1.43 06/05/2009 10.86 1.43 08/18/2009 11.65 1.41
10/22/2008 10.12 1.39 01/08/2009 9.56 1.46 03/20/2009 10.37 1.43 06/06/2009 10.87 1.43 08/19/2009 11.68 1.41
10/23/2008 10.12 1.39 01/09/2009 9.57 1.46 03/21/2009 10.38 1.43 06/09/2009 10.89 1.43 08/20/2009 11.69 1.41
10/24/2008 10.13 1.39 01/10/2009 9.58 1.46 03/24/2009 10.39 1.43 06/10/2009 10.92 1.43 08/21/2009 11.70 1.41
10/25/2008 10.15 1.39 01/13/2009 9.59 1.46 03/25/2009 10.42 1.44 06/11/2009 10.93 1.43 08/22/2009 11.71 1.41
10/28/2008 10.15 1.39 01/14/2009 9.61 1.46 03/26/2009 10.43 1.44 06/13/2009 10.94 1.43 08/25/2009 11.72 1.41
10/29/2008 10.18 1.39 01/15/2009 9.62 1.46 03/27/2009 10.44 1.44 06/16/2009 10.96 1.42 08/26/2009 11.75 1.41
10/30/2008 10.13 1.39 01/16/2009 9.63 1.46 03/28/2009 10.46 1.44 06/17/2009 10.99 1.42 08/27/2009 11.76 1.41
10/31/2008 10.14 1.39 01/17/2009 9.64 1.46 03/31/2009 10.27 1.43 06/18/2009 11.00 1.42 08/28/2009 11.77 1.41
11/01/2008 10.15 1.39 01/20/2009 9.65 1.46 04/01/2009 10.26 1.43 06/19/2009 11.01 1.42 08/29/2009 11.78 1.41
11/04/2008 10.16 1.39 01/21/2009 9.68 1.45 04/02/2009 10.25 1.43 06/20/2009 11.02 1.42 09/01/2009 11.79 1.41
11/05/2008 10.20 1.39 01/22/2009 9.69 1.45 04/03/2009 10.26 1.43 06/23/2009 11.03 1.42 09/02/2009 11.81 1.41
11/06/2008 10.21 1.39 01/23/2009 9.70 1.45 04/04/2009 10.27 1.43 06/24/2009 11.06 1.43 09/03/2009 11.82 1.41
11/07/2008 10.22 1.39 01/24/2009 9.79 1.45 04/07/2009 10.28 1.43 06/25/2009 11.07 1.43 09/04/2009 11.83 1.41
11/08/2008 10.23 1.39 01/27/2009 9.80 1.45 04/08/2009 10.31 1.43 06/26/2009 11.08 1.43 09/05/2009 11.84 1.41
11/11/2008 10.24 1.39 01/28/2009 9.84 1.45 04/09/2009 10.32 1.43 06/27/2009 11.09 1.42 09/08/2009 11.85 1.41
11/12/2008 10.28 1.39 01/29/2009 9.85 1.45 04/10/2009 10.33 1.43 06/30/2009 11.10 1.42 09/09/2009 11.88 1.41
11/13/2008 10.23 1.39 01/30/2009 9.86 1.45 04/15/2009 10.34 1.43 07/01/2009 11.12 1.42 09/10/2009 11.89 1.41
11/14/2008 10.24 1.39 01/31/2009 9.87 1.45 04/16/2009 10.39 1.43 07/02/2009 11.14 1.42 09/11/2009 11.90 1.41
11/15/2008 10.25 1.39 02/03/2009 9.88 1.45 04/17/2009 10.40 1.43 07/03/2009 11.14 1.42 09/12/2009 11.91 1.41
11/18/2008 10.26 1.39 02/04/2009 9.91 1.44 04/18/2009 10.41 1.43 07/04/2009 11.15 1.42 09/15/2009 11.92 1.41
11/19/2008 10.27 1.38 02/05/2009 9.92 1.44 04/21/2009 10.42 1.43 07/07/2009 11.16 1.42 09/16/2009 11.95 1.40
11/20/2008 10.28 1.38 02/06/2009 9.93 1.44 04/22/2009 10.44 1.43 07/08/2009 11.19 1.42 09/17/2009 11.97 1.40
11/21/2008 10.29 1.39 02/07/2009 9.94 1.44 04/23/2009 10.45 1.43 07/09/2009 11.22 1.42 09/18/2009 11.98 1.40
11/22/2008 10.30 1.39 02/10/2009 9.95 1.44 04/24/2009 10.46 1.43 07/10/2009 11.23 1.42 09/19/2009 11.99 1.40
11/25/2008 10.31 1.39 02/11/2009 9.99 1.44 04/25/2009 10.47 1.43 07/11/2009 11.24 1.42 09/22/2009 12.00 1.40
11/26/2008 10.35 1.38 02/12/2009 10.00 1.44 04/28/2009 10.48 1.43 07/14/2009 11.25 1.42 09/23/2009 12.00 1.40
11/27/2008 10.36 1.38 02/13/2009 10.01 1.44 04/29/2009 10.50 1.43 07/15/2009 11.29 1.42 09/24/2009 11.95 1.36
11/28/2008 10.37 1.38 02/14/2009 10.02 1.44 04/30/2009 10.51 1.43 07/16/2009 11.30 1.42 09/25/2009 11.96 1.36
11/29/2008 10.39 1.38 02/17/2009 10.03 1.44 05/01/2009 10.52 1.43 07/17/2009 11.31 1.42 09/26/2009 12.13 1.31
12/02/2008 10.40 1.38 02/18/2009 10.06 1.44 05/05/2009 10.53 1.43 07/18/2009 11.32 1.42 09/29/2009 12.14 1.31
12/03/2008 10.44 1.38 02/19/2009 10.07 1.44 05/06/2009 10.56 1.42 07/21/2009 11.33 1.42 09/30/2009 12.17 1.31
12/04/2008 10.45 1.38 02/20/2009 10.09 1.44 05/07/2009 10.57 1.42 07/22/2009 11.37 1.42
12/05/2008 10.46 1.38 02/21/2009 10.10 1.44 05/08/2009 10.58 1.42 07/23/2009 11.38 1.42
12/06/2008 10.47 1.38 02/24/2009 10.11 1.44 05/09/2009 10.59 1.42 07/24/2009 11.39 1.42
12/09/2008 10.48 1.38 02/25/2009 10.14 1.44 05/12/2009 10.60 1.42 07/25/2009 11.40 1.42
12/10/2008 10.50 1.38 02/26/2009 10.15 1.44 05/13/2009 10.63 1.42 07/28/2009 11.41 1.42
12/11/2008 10.51 1.38 02/27/2009 10.16 1.44 05/14/2009 10.64 1.42 07/29/2009 11.45 1.42
KanAm Spezial grundinvest Fonds 91
Annual Report as of September 30, 2009 .................................... Facts and Figures
Certification in Accordance with Section 5(1) Sentence 1 No. 3
of the InvStG on the Audit of the Tax Information
........................................................................................................................................................................................................................
To the investment company KanAm based on these documents and the infor- Company. This applies in particular with
Grund Kapitalanlagegesellschaft mbH mation intended for publication. Our audit regard to the allocation of interest income
(hereinafter referred to as the Company): extends in particular to the tax classifica- to permanent establishments.
tion of investments, income and expense,
The Company appointed us to establish, including their classification as income- We believe that our audit provides a rea-
in accordance with section 5(1) sentence related expenses, and to other tax re- sonable basis for our opinion.
1 no. 3 of the “Investmentsteuergesetz” cords.
(InvStG – German Investment Tax Act), On this basis, we certify to the Company
whether the information to be published We conducted our audit in accordance in accordance with section 5(1) sentence
by the Company for the KanAm Spezial with the generally accepted standards for 1 no. 3 of the InvStG that the information
grundinvest Fonds fund in accordance the audit of financial statements promul- in accordance with section 5(1) sentence
with section 5(1) sentence 1 nos. 1 and 2 gated by the “Institut der Wirtschaft- 1 nos. 1 and 2 of the InvStG was deter-
of the InvStG for the period from October sprüfer” (IDW), with the appropriate modi- mined in accordance with the provisions
1, 2008 to September 30, 2009 was deter- fications. Those standards require that we of German tax law.
mined in line with the provisions of Ger- plan and perform our audit such that we
man tax law. can assess with reasonable assurance Nuremberg, November 25, 2009
whether the information in accordance
The determination of the tax information with section 5(1) sentence 1 nos. 1 and 2 Deutsche Baurevision Aktiengesell-
in accordance with section 5(1) sentence of the InvStG is free of material misstate- schaft Wirtschaftsprüfungsgesellschaft
1 nos. 1 and 2 of the InvStG in conjunction ments. Knowledge of the management of
with the provisions of German tax law is the investment fund and evaluations of (Schulz)
the responsibility of the Company‘s legal possible misstatements are taken into ac- Rechtsanwalt /Steuerberater
representatives. Determination is based count in the determination of audit proce-
on the accounts and the annual report in dures. The effectiveness of the internal (ppa. Dirnaichner)
accordance with section 44(1) of the “In- control system for the determination of in- Wirtschaftsprüfer /Steuerberater
vestmentgesetz” (InvG – German Invest- formation in accordance with section 5(1)
ment Act) for the relevant period. The tax sentence 1 nos. 1 and 2 of the InvStG and
information comprises a reconciliation as the evidence supporting the tax informa-
required by the provisions of German tax tion are examined primarily on a test basis
law and an overview of certain tax infor- within the framework of the audit.
mation in accordance with section 5(1)
sentence 1 nos. 1 and 2 of the InvStG that The audit also includes assessing the
is required to be disclosed. Company’s interpretation of the tax laws
applied. No objection may be raised to
Our responsibility is to express an opin- the interpretation selected by the Com-
ion, based on our audit, as to whether the pany if this interpretation could reason-
information the Company is required to ably be supported in each case by ex-
publish in accordance with the provisions planatory memoranda, court rulings,
of the InvStG was determined in accor- relevant specialist literature, and pub-
dance with the provisions of German tax lished opinions of the fiscal authorities.
law. Our audit was based on the books Your attention is drawn to the fact that fu-
and records audited by an auditor in ac- ture legal developments and in particular
cordance with section 44(5) of the InvG new insights resulting from court rulings
and on the audited annual report. Our could necessitate a different assessment
opinion extends to the reconciliation of the interpretation adopted by the
92 KanAm Spezial grundinvest Fonds
Income Tax Treatment
of the Distribution
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Units held as Units held as
private assets business assets
in EUR in EUR
Distribution per unit 5.1500 5.1500
Taxable portion of the distribution 1.0520 1.0520
Tax-free portion of the distribution1) 4.0980 4.0980
1)
In particular tax-free income from immovable assets in the amount of EUR 2.5273 per unit for business investors
subject to income tax that is subject to the progression clause in Germany (“Progressionsvorbehalt”) as a result
of double taxation agreements.
Income Subject to Investment Income Tax
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Units held as Units held as
private assets business assets
in EUR in EUR
Basis of calculation per unit 1.058 1.058
Investment income tax on units held by custodian (25%) 0.2629 0.2629
Solidarity surcharge (5,5 %) 0.0145 0.0145
On the instructions of the fiscal author- retained depending on the type of cus-
ities, the investment income tax appli- tody involved. The solidarity surcharge
cable to individual investors (section 7 is initially levied on this amount. The
of the InvStG) is calculated as follows: amount is credited in full where a non-
The income subject to investment in- assessment certificate or proof of non-
come tax included in the distribution resident status has been submitted, or
(EUR 1.0520 per unit held as private or up to the resulting reduction in taxes
business assets) is first multiplied by upon submission of an exemption in-
the number of units held by the investor struction. Otherwise, the investor re-
at the distribution date (December 18, ceives a tax certificate for the amount
2009) to produce the amount to be retained.
Investment Performance
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total
in EUR
Distribution from the previous year in the current fiscal year 5.15
Return in the fiscal year 0.19
Total income 5.34
KanAm Spezial grundinvest Fonds 93
Annual Report as of September 30, 2009 .................................... Executive Bodies
Executive Bodies
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Investment company: Management: der Immobilien-Investment-Sachver-
ständigen e.V. (BIIS – German Associ-
KanAm Grund Hans-Joachim Kleinert ation of Real Estate Investment Ex-
Spezialfondsgesellschaft mbH Matti Kreutzer perts). The members of the Expert
MesseTurm Carmen Reschke Committee of KanAm Spezial grundin-
60308 Frankfurt am Main Olivier Catusse vest Fonds are as follows:
Germany
also Managing Directors of Dipl.-Ing. Carlos Nugent, Hamburg,
phone +49-69-710470-0 KanAm Grund Germany
fax +49-69-710470-800 Kapitalanlagegesellschaft mbH Expert for the valuation of developed
and undeveloped properties, as well
Subscribed and paid-in capital: Custodian bank: as expert and appraiser at Hamburger
EUR 5.0 million Feuerkasse
Liable capital as of December 31, 2008: M.M.Warburg & CO KGaA, Hamburg, – Chairman –
EUR 5.1 million Germany
Dipl.-Ing. Eberhard Stoehr, Berlin,
Frankfurt am Main Commercial Register, Subscribed and paid-in capital: Germany
HRB 57056 EUR 125.0 million Publicly certified and sworn expert
Formed on June 25, 2003 Liable capital as of December 31, 2008: (Berlin Chamber of Industry and Com-
EUR 321.8 million merce) for the valuation and rents of
Supervisory Board: developed and undeveloped properties
Auditors: – Deputy Chairman –
Dietrich von Boetticher
Lawyer, Munich, Germany Deutsche Baurevision Aktiengesellschaft Dr. Ing. AIV Klaus Keunecke, Berlin,
– Chairman – Wirtschaftsprüfungsgesellschaft, Germany
Nuremberg, Germany Publicly certified and sworn expert
Alexander Mettenheimer (Berlin Chamber of Industry and Com-
Personally liable partner, Expert Committee: merce) for the valuation and rents of
Merck Finck & CO Privatbankiers, developed and undeveloped properties
Munich, Germany An Expert Committee comprising in-
dependent, reliable, and professionally Peter Haeffs, Düsseldorf, Germany
Klaus Hohmann suitable persons must be established Expert for the valuation of developed
Lawyer, Kelkheim, Germany for the valuation of properties owned and undeveloped industrial and commer-
Fellow of the Royal Institution of by the Company in accordance with cial properties and commercial rents
Chartered Surveyors the “Investmentgesetz” (InvG – Ger-
man Investment Act). All the experts
Shareholders: are members of the Bundesverband
KanAm GmbH & Co. KG,
Munich (90%)
Hans-Joachim Kleinert (5%)
Matti Kreutzer (5%)
Notice:
No conclusions about future performance can be drawn from past returns and
tax-free portions. This English version of the Annual Report is a convenience trans-
lation only. The original German version is the sole legally binding text.
94 KanAm Spezial grundinvest Fonds
KanAm Grund
Spezialfondsgesellschaft mbH
MesseTurm
60308 Frankfurt am Main
Germany
phone +49-69-710470-0
fax +49-69-710470-800
www.kanam-grund-spezial.de
E800/12.2009
