HIH Invest Real Estate GmbH (HIH Invest) just launched another investment fund together with Vonovia, which will handle the property management while HIH Invest will act as an asset manager and fund manager.
The fund already acquired ten properties with a combined investment volume of c. €516m. Eight of the properties are developments and new-build structures while two represent existing properties that were thoroughly modernised. The properties were sold by GSW and Buwog, both being Vonovia member companies. The total lettable area of the properties equals 127,000m2, thereof c. 97,600m2 of residential and 8,700m2 of commercial floor area. Also included are 928 underground and surface-level parking spots. The roughly 1,700 residential units represent predominantly apartments of two or three bedrooms. In addition, the portfolio includes a student apartment block and serviced apartments. Three of the properties are located in Berlin, two in Stuttgart, and one each in Hamburg, Leipzig, Dresden, Munich and Falkensee near Berlin.
Felix Meyen, Managing Director at HIH Invest, explained: “Once again, we seized an opportunity to buy into an attractive, energy-efficient portfolio of residential assets located in German metropolises and fast-growth cities. The buildings have been or will be, constructed to meet the KfW-55 or the KfW-55 EE sustainability standard, while the two revitalised buildings underwent comprehensive energy refurbishments. Two properties are seeking a DGNB “Gold” sustainability rating. Most of the underground car parks of the buildings are equipped with electric vehicle parking and charging stations. We have also been favourably impressed by the metropolitan and urban sites. The residential properties are located in historically evolved districts and offer above-average quality of living as well as public transportation, shopping amenities, schools and doctors’ offices within walking distance.”
The strategy of the newly launched residential real estate fund will implement Article 8 of the EU Sustainable Finance Disclosure Regulation. The equity capital required for the fund has been committed by a club of institutional investors. Vonovia provides an initial guaranteed letting service for residential and commercial units.
Carsten Demmler, Managing Director of HIH Invest, elaborated: “Despite the challenging environment, we managed to present another outperforming product to our investors. We were able to gather a club of seven institutional German investors. It is an auspicious time to invest in Germany’s rental housing market because selling prices have just bottomed out. With demand for accommodation exceeding supply, rent revenues harbour further upside potential.
“Just recently, we launched a joint fund with Vonovia, which acquired a total of 14 property developments and new-build structures that have a combined investment volume of more than €630m. We have come to know Vonovia as a reliable and very professional partner with whom we managed to develop a highly attractive investment opportunity with an outstanding risk-return ratio. We look forward to our continued productive collaboration with Vonovia and with our investors,” added Alexander Eggert, Managing Director of HIH Invest.
The Hogan Lovells law firm provided legal and tax advice during the transaction. The technical and the ESG pre-acquisition audits were performed by Drees & Sommer.
Image source - HIH Invest.
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