HIH Invest Real Estate has added a new day nursery to its HIH Zukunft Invest, an open-ended institutional fund that targets educational facilities in Germany.

The manager has invested an unspecified amount to buy the yet-to-be-completed asset in Bremen from local developer BSB Baubetreuung und Bauträger.

The asset, which is scheduled for completion in the third quarter of 2024, is pre-let on a 25-year lease, plus a five-year renewal option.

Jens Nagelsmeier, the head of retail and healthcare transaction management at HIH Invest, said: “There is massive pent-up demand for day-care spots for toddlers below the age of three and for children between three and six years of age in Bremen.

“The caregiving needs are particularly urgent in the Mittelshuchting district where the property is located.”

Nagelsmeier added that residential quarters of up to 160 apartments that are planned in the immediate vicinity will further increase demand.

The daycare centre in Bremen will be the seventeenth asset to be added to the HIH Zukunft Invest fund.

HIH Zukunft Invest focuses on educational facilities like day nurseries, schools, and academic buildings in fast-growth cities and metro regions in Germany.

The fund has a targeted volume of at least €100m, with a leverage component of 50%. The latest deal takes the fund’s real estate assets up to a total of €86m.

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

Topics