HIH Invest Real Estate (HIH Invest) has announced the launch of a new investment fund for institutional investors focusing on new-build large-scale housing projects in German cities with positive demographics.
The vehicle, named Wohninvest Quartiere Deutschland, will target a volume of €500 mln, and will seek to distribute 3.25 to 3.75% a year.
The fund has made the first purchase with the acquisition of a residential development in Osnabrück from BPD Bouwfonds Immobilienentwicklung (BPD), one of the largest property developers in Europe. Within the framework of the development, nine residential buildings of three to four storeys are being constructed for a total of 241 residential units on a combined lettable area of roughly 18,800 m2. The underground car park will deliver 224 car and 438 bicycle parking spaces. Completion is scheduled for Q1 2024.
The acquisition of the properties took the form of an asset deal with a forward funding structure. It was agreed not to disclose the selling price.
Klaus Niewöhner-Pape, member of the Investment Committee Residential at HIH Invest Real Estate, said: 'It is impossible to predict the long-term consequences of the coronavirus pandemic. However, it is not without reason that residential investments are considered resilient. Especially the segment of mid-market or low rents is currently a safe bet for institutional investors. This is all the more true for markets characterised by pent-up demand – Osnabrück being case in point.'
