HIH Invest Real Estate has acquired a residential development in Wuppertal on behalf of the Deutschland Wohnen Invest institutional fund from its developer, TeamRheinRuhr Projektentwicklung.
Financial details were not disclosed. However, the firm said the deal brings the fund's total investment volume to more than €155 mln, including an equity interest worth €85 mln.
The property, which will deliver 5,025 m2 of dwelling floor area, is located on Münzstrasse in the Barmen district. It will create 60 residential units inside a five-storey building that will meet the KfW Efficiency House 40 EE standard.
It is supplemented by a listed live-in signal box upgraded to the energy-efficiency standard for heritage buildings (Denkmal EE) and 50 garage parking spots with EV charging points.
The planning consent is expected to be issued by the end of July 2022, with the building to be completed by mid-2024.
'We are investing in a market-consistent, energy-efficient housing mix in Wuppertal whose focus is on two- and three-bedroom apartments and an upscale fit-out standard,' said Nadine Robra, team leader transaction management Germany, as she elaborated the acquisition.
The project is part of a new urban quarter that is under development on Sedansberg and that will create multi-family housing units, town houses and terraced houses.
'The slow pace of construction in Wuppertal and the strong demand for high-quality apartments, especially for families, translates into a persistently attractive investment opportunity for the fund. In addition to the excellent property specifications, factors encouraging the investment include the stable cash flow, the demand pressure as well as the sound structure of the location and the great infrastructure,' added Tom Kircher, Fund Manager at HIH Invest.
The acquisition in Wuppertal marks the sixth investment of the Deutschland Wohnen Invest fund, an open-ended Article 8 fund, and took the form of an asset deal. The fund is targeting an investment volume of more than €400 mln.
The legal and tax due diligences (DD) were conducted by the law firm of Heussen Rechtsanwalts-gesellschaft, while Case Real Estate took care of the technical pre-acquisition audit. The environmental due diligence was undertaken by Arcadis Germany.
iib Institut Innovatives Bauen Consult provided advice to the buyer side on location. The transaction was brokered by Imovo, based in Düsseldorf.
