HIH Invest Real Estate (HIH Invest) has announced the purchase of a 7,050 m2 logistics asset from the Lange Family Office (LP MG) on behalf of its second logistics real estate fund targeting a volume of €500 mln.
The open-ended vehicle, “Deutschland+ Core Logistik Invest,” is aiming to distribute annual returns of 3.5 to 4.0% and has a minimum subscription amount of €5 mln. The fund’s target group includes institutional investors and financial institutions. As with the precursor fund, Germany is the main investment destination, while about 30% of the fund capital is to be invested in neighboring countries such as Netherlands, France, Austria. The fund will be seeking an Article-8 fund certification.
The 7,050 m2 property on Hamburgring 30 in the city of Mönchengladbach in western Germany represents an ESG compliant newly constructed building that is fully let to an internationally active e-commerce service provider. The lease has a term of five years.
Carsten Demmler, managing director of HIH Invest, said: ‘When we started buying property for our first logistics fund in 2020, we entered the logistics market at the right time. In little over a year, the fund achieved its targeted volume of €500 mln, and is fully invested with 13 assets now.’
'Demand for logistics facilities, which continued to grow even during the pandemic, has driven a stable if modest rental growth in this segment in addition to ensuring a persistently high take-up. Among our investors, demand for logistics real estate for the purpose of diversifying their portfolio allocations remains very strong – which is what motivated us to launch a successor fund,’ added Alexander Eggert, managing director of HIH Invest.
