The open-ended Warburg-HIH Zukunft Invest social infrastructure fund, which invests in day nurseries in Germany, has added an asset in Eichenau to its portfolio.

The fund’s manager Warburg-HIH Invest Real Estate has invested an undisclosed amount to buy the asset in the municipality of Eichenau near Munich from the Terra Group. The acquired asset includes doctors’ surgeries and offices.

Jens Nagelsmeier, the head of transaction management retail of Warburg-HIH Invest, said: “Investing in this asset meets the ESG criteria for a social infrastructure investment, which is something increasingly important to investors. The asset also provides cashflow both instant and constant for a long period of time.”

The acquisition of the day nursery in Eichenau brings the fund’s investment volume up to a total of over €48m, which is nearly the half-way mark en route to the targeted total of €100m, the manager said.

Thomas Winkelmann, the managing director of Terra Group, said: “Need-based daycare amenities are a precondition for the ability to reconcile family and work. Progressive urbanisation is driving demand for childcare spots, and nowhere more so than in metro regions. Investing in day nurseries is a crisis-resistant and simultaneously sustainable commitment for investors.”

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