HIH Invest Real Estate has added a residential property development to its German portfolio.
The real estate investor has paid an undisclosed sum, on behalf of its Deutschland Wohnen Invest fund, to buy the property in Bochum from developer Ten Brinke.
HIH Invest said it expects to develop a housing estate of 55 units at the site. Around 50% of the project will be developed as subsidised housing.
The development, which is expected within two years, will consist of three building sections of four storeys each, as well as a separate building in the rear part of the plot that will house a day nursery.
Nadine Robra, transaction management team leader in Germany at HIH Invest, said: “The affordable flats we are about to supply will meet with keen interest. Although the building activities on the residential market in Bochum have picked up steam in recent years, the number of subsidised flats is rapidly declining.”
Tom Kircher, fund manager at HIH Invest, said: “Via this new-build construction project, we are creating a well-diversified apartment mix that is particularly attractive for families because of a sound infrastructure, the directly annexed day nursery, and the location on the city’s outskirts, close to green areas.
Ansgar Pape, member of the residential investment committee at Warburg-HIH Invest, said: “The residential development in Bochum is an excellent example for the way in which we as investment manager can contribute to social cohesion: Via our Deutschland Wohnen Invest fund, we are investing in family-friendly housing development projects that create the affordable accommodation so urgently needed, and develop residential quarters that meet the specific requirements of families.
“In addition to affordable housing, there is also a nationwide shortfall of day-care facilities for children – with more than 1,000 new spots needed in Bochum alone. We will let the annexed day nursery to an experienced nursery operator on a long-term lease, and thereby help to alleviate the shortage.”
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