HSH Real Estate AG is strengthening its business in real estate funds for institutional investors by acquiring a further 33 percent in LB Immo Invest GmbH from Real I.S.,. HSH Nordbank AG's real estate subsidiary will thus increase its equity stake in LB Immo Invest to two-thirds. The shares will be acquired effective July 1, 2008.
"The earnings and development opportunities of special real estate investment funds for institutional investors provide great potential. The increased stake in LB Immo Invest marks a continuation of the course we have been pursuing. With the changed shareholder structure we expect more rapid growth in our special real estate investment funds business," explained Dr. Marc Weinstock, CEO of HSH Real Estate. "For HSH Real Estate we will be stepping up our fundraising capacity significantly and plan to increase assets under management to €10 billion by 2010. In the wake of our growth course, we aim to increase our holding in LB Immo Invest to 100 percent and have submitted a corresponding offer to Helaba."
"We plan to expand our institutional investors network considerably and to pool distribution and acquisition in an efficient decisionmaking structure," explained Hans-Dieter Martin, Managing Director of LB Immo Invest. "HSH Real Estate's stake in our company will enable us to improve our distribution power in the institutional sector further. Our main goal over the next three years is to place our company among the top 3 capital investment companies for special real estate investment funds."
Leading market position in special real estate investment funds
Over the past few years, LB Immo Invest has acquired a strong market position in Germany in the special real estate investment funds segment. The internationally active special funds include individual funds, component funds and further equity concepts. With a current fund volume of