HIH Invest Real Estate has created a second partnership with listed German housing company Vonovia and acquired a €516m portfolio of 10 properties.
The properties, which include a student apartment block and serviced apartments, were sold by Vonovia companies GSW and Buwog.
Three of the properties are located in Berlin, two in Stuttgart, and one each in Hamburg, Leipzig, Dresden, Munich and Falkensee near Berlin.
HIH, which is investing in the venture as a majority shareholder on behalf of a club of institutional investors, will act as asset manager and fund manager with Vonovia in charge of property management.
The latest venture follows the two firms’ recent partnership to acquire 14 properties in Germany worth €630m for a new residential real estate fund they had created.
Felix Meyen, MD at HIH Invest, said: “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.”
Carsten Demmler, MD of HIH Invest, said: “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.”
Alexander Eggert, MD of HIH Invest, said: “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.”
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