German property investor HIH Invest has announced the launch of a new business unit focused on value-add investments.
This move is in response to the increasing demand for value-add opportunities from international investors, particularly in the logistics and residential sectors. The plan is also to expand into other asset classes, especially office.
Previously concentrating on lower-risk core and core-plus investments, HIH Invest is now diversifying its portfolio to include more risk-taking strategies. By establishing this new unit, the company aims to attract a broader range of investors, including international investment managers and institutional investors without a dedicated platform in Germany, as well as family offices without expertise in the sector.
As an operating or joint venture partner, HIH Invest will provide investment and asset management services. The company's deep market knowledge and expertise will be instrumental in executing business plans and maximizing asset value.
Lars Bothe, the former principal at Mirastar Real Estate Investment Management, will lead the new business unit. Prior to Mirastar, Bothe worked at HIH Invest for seven years, culminating in his role as head of Transaction Management Logistics. He began his career at KPMG.
Felix Meyen, managing director at HIH Invest, commented: ‘In the current market environment, we see attractive opportunities for counter-cyclical investment strategies for undermanaged standing assets with a sub-optimal tenancy situation, technical and ESG challenges and for certain development cases. Thanks to our wide network and our high asset management competence, we are bringing the ideal set-up for implementing the value-add strategy to the job.’
Lars Bothe commented: ‘In my new role, it will be my responsibility to identify, structure and execute value-based real estate projects in various asset classes. I’m convinced that the current market environment offers fascinating opportunities waiting to be seized via an active, sustainable and creative asset management approach.’
The newly formed Value-Add Investments business unit will oversee the implementation and execution of the business plan throughout the holding period of each investment.
The new business unit will kick off with a project to revitalize LogPark Leipzig, a former distribution center. HIH Invest and its joint venture partner, Partners Group, plan to upgrade the facility by adding approximately 30,000 m2 of new space.
