HIH Invest Real Estate GmbH (HIH Invest) just launched an investment fund in collaboration with the Vonovia housing company. HIH Invest holds an interest in the fund via a regulated AIF and is the majority shareholder representing a club of institutional investors. Vonovia will handle the property management, while HIH Invest will act as asset manager and fund manager.
The fund acquired a total of 14 property developments and new-build structures with a combined investment volume of over €630m, with eleven of the properties sold by Vonovia, and three by Quarterback Immobilien AG. The properties comprise a total lettable area of over 127,000m2, thereof 113,500m2 of residential and 13,500m2 of commercial floor area. Also included are 1,161 underground and surface-level parking spots. The 1,592 residential units represent predominantly apartments of two or three rooms. In addition, the portfolio includes student apartments and age-appropriate housing. The properties are located in Berlin, Hamburg, Leipzig, Halle/Saale, Dresden, Konigs Wusterhausen, Boblingen and Offenbach.
“Among the compelling aspects of these sites are their central location in historically evolved districts of robust metro regions and their convenient public transport links. Shopping amenities as well as schools and doctors’ offices are within walking distance. All properties come with excellent specifications, most of them featuring parquetry, underfloor heating and floor-length windows. They meet the German energy standards KfW 55, KfW 55 EE and EnEV or else are being prepared for a DGNB Gold certification. The underground car parks of the buildings are equipped with electric vehicle parking and charging stations. For us, this meant a unique opportunity to buy into a diversified, energy-efficient new-build portfolio in eight fast-growing cities,” explained Felix Meyen, Managing Director at HIH Invest.
Alexander Eggert, Managing Director of HIH Invest, explained: “With the newly launched fund, we have succeeded in expanding our portfolio with a strategically strong product even in this challenging market environment. The German rental property market is a promising asset class. Residential investments are noticeably less susceptible to fluctuations in value and offer growing cash flows.”
“We are very glad to be able to open up a highly attractive investment opportunity with an excellent risk-return ratio for our institutional investors. As Germany’s biggest housing company with holdings of more than 543,000 apartments and approximately €84b in real estate assets, this DAX-listed conglomerate brings plenty of experience in housing construction to the table. The fund represents the first stage in our further collaboration with Vonovia and institutional investors,” elaborated Carsten Demmler, Managing Director at HIH Invest.
The Ashurst law firm provided legal and tax advice during the transaction. The technical and the ESG pre-acquisition audits were performed by Drees & Sommer. BNP Paribas Real Estate Consult was responsible for the commercial due diligence.
Written by Leon Goldwater for Europe Real Estate.
Image source - HIH Invest.
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