Warburg-HIH Invest Real Estate acquired four day-nurseries under development in North Rhine-Westphalia. Two additional acquisitions are in an advanced planning stage. The properties will be held in the “Warburg-HIH Zukunft Invest“ fund, the company’s new open-ended special AIF. Once the property development is completed, the fund will thus own ten day-nurseries worth a combined investment volume of more than €45m.
The properties in Saxony consist of two new-build and two existing buildings with a gross lettable area of 7,500m². One of these two new buildings will be completed by the end of this year, the other asset is scheduled for completion by the end of 2021. The properties are let on 25-year leases.
The assets acquired in NRW represent four day-nursery developments that are being implemented by developer TERRA Projektentwicklung. The properties are located in Bochum (two assets), Duisburg and Oberhausen. Providing a total of 395 childcare spots, they are or will be occupied on 30-year terms leases by Step Kids Education (Stepke), a blue-chip sponsor. Stepke operates a total of 25 day-nurseries in Germany. The facilities are scheduled for completion between the fourth quarter of 2021 and year-end 2022.
Hans-Joachim Lehmann, Managing Director at Warburg-HIH Invest, said: “With the acquisition of eight day-nurseries within a six-month period and with negotiations underway to acquire another two assets, Warburg-HIH Invest achieved the necessary market penetration to ensure the continued growth of the investment fund, and has built up the know-how needed to manage them. What we aim for in this context is partnership-like cooperation with professional developers.”
“Through the Warburg-HIH Invest, we are paving the way for important investments in the social infrastructure in Germany,” said Alexander Eggert, Managing Director at Warburg-HIH Invest. “The demand for child care spots could hardly be stronger. The investment fund is primarily intended for savings banks. It offers long-term income and meets important ESG criteria. Environmentally friendly new buildings and a focus on training and educating children constitute an excellent basis for sustainable real estate investments in a positive market environment.”
