HIH Invest Real Estate has acquired a day nursery in Leipzig for its HIH Zukunft Invest open-ended institutional fund.

The two-storey property at Clara-Wieck-Strasse 9 provides 1,638sqm of lettable accommodation, with space for 165 children – 28 in the crèche section and 117 in the preschool area.

The daycare centre is located next to another day nursery at Stöckelstrasse 37-41, which is part of the same HIH Zukunft fund.

The association sponsoring both facilities is the Johanniter-Unfall-Hilfe, the national charity of the Order of St John in Germany. The lease agreement of the property just acquired will run for a remaining term of more than 15 years.

“The acquisition gives us the chance to invest in a day nursery that, while well-established, is still rather new, and that exploits synergy effects as it collaborates with the day nursery on Stöckelstrasse,” said Jens Nagelsmeier, head of transaction management retail and healthcare at HIH Invest.

“Both facilities are located in a densely populated residential area in the Schönefeld-Abtnaundorf district in one of the fastest-growing cities in Germany. Leipzig’s brisk demographic growth is expected to continue through 2035. As a consequence, day-care spots for children are very much in demand.”

The Article 8 fund, under the EU Sustainable Finance Disclosure Regulation, is in its investment phase. The fund focuses on educational facilities such as day nurseries, schools and academic buildings in fast-growth cities and metro regions in Germany.

It has a target volume of at least €100m and may use up to 50% leverage at the portfolio level.

To read the latest edition of the latest IPE Real Assets magazine click here.