HIH Invest Real Estate's new institutional investment fund just made the first investment by committing €630 mln to a living portfolio of 14 assets.
The vehicle was launched together 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 acquisition involves 14 property developments and new-build structures acquired from Vonovia (11 assets for €500 mln) and Quarterback Immobilien (3 for €130 mln).
The properties comprise a total lettable area of over 127,000 m2, thereof 113,500 m2 of residential and 13,500 m2 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 (2), Hamburg, Leipzig (4), Halle/Saale, Dresden (2), Königs Wusterhausen, Böblingen and Offenbach (2).
'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 specification, 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.
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 is committed by a club of institutional investors. Vonovia provides an initial guaranteed letting service for the residential and commercial units.
'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 84 billion euros 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,' commented Carsten Demmler, managing director at HIH Invest.
