Warburg-HIH Invest Real Estate’s childcare investment fund has added four day-nurseries in Germany to its portfolio.
The manager has invested an undisclosed sum to buy the properties being developed in North Rhine-Westphalia for the open-ended Warburg-HIH Zukunft Invest fund.
Two of the properties are located in Bochum, and one each in Duisburg and Oberhausen. The facilities are scheduled for completion between the fourth quarter of 2021 and year-end 2022.
Warburg-HIH said it is in talks to buy two additional assets.
The latest acquisition will be added to the Warburg-HIH Zukunft Invest’s portfolio of four assets. The new fund intends to invest €100m in about 20 assets.
Hans-Joachim Lehmann, MD at Warburg-HIH Invest, said: “With the acquisition of eight day-nurseries within a six-month period and with negotiations underway to acquire another two assets, Warburg-HIH Invest achieved the necessary market penetration to ensure the continued growth of the investment fund, and has built up the know-how needed to manage them.
“What we aim for in this context is partnership-like cooperation with professional developers.”
Alexander Eggert, MD at Warburg-HIH Invest, said: “Through the Warburg-HIH Invest, we are paving the way for important investments in the social infrastructure in Germany.
“The demand for child care spots could hardly be stronger. The investment fund is primarily intended for savings banks. It offers long-term income and meets important ESG criteria.” Eggert said.
To read the digital edition of the latest IPE Real Assets magazine click here.
