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We adopt a future-oriented approach to finding, developing and managing properties in the interests of our clients.

Investment

We develop bespoke investment solutions. We offer institutional investors the full range of knowledge in relation to structuring, product development, real estate management and market development.

Management

We are passionate real estate managers and fund administrators. We know the requirements of clients, properties, legislators and the market.
We take on the challenges of the future. Early identification of changes in the market, implementation of regulatory requirements and future-oriented digital management arepart of our corporate philosophy.

In the HIH Group, 810 real estate experts at eleven locations manage properties and investments throughout their lifecycle with dedication, reliability and motivation. Our clients benefit from the comprehensive service range, quick decision-making and close cooperation between departments.
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The HIH Group



Warburg-HIH Invest Acquires Eight Day-Nurseries for Childcare Investment Fund


Warburg-HIH Invest Acquires Eight Day-Nurseries for Childcare Investment Fund

  • New childcare open-ended special fund for savings banks and other institutional investors
  • Four day-nurseries are located in Saxony and four property developments in North Rhine Westphalia
  • Properties occupied on 25- and 30-year leases

Hamburg, 5 August 2020 – Following the acquisition of a portfolio of day nurseries in Saxony six months ago, Warburg-HIH Invest Real Estate (“Warburg-HIH Invest”) now acquired another four day-nurseries under development in North Rhine-Westphalia (“NRW”). Two additional acquisitions are in an advanced planning stage. The properties will be held in the “Warburg-HIH Zukunft Invest“ fund, the company’s new open-ended special AIF. Once the property development is completed, the fund will thus own ten day-nurseries worth a combined investment volume of more than 45 million euros. The fund volume target is 100 million euros. When fully invested, the fund will include about 20 assets. The fund envisions a stable cash-on-cash yield of 4.0 to 5,0 percent annually.

The assets acquired in NRW represent four day-nursery developments that are being implemented by developer TERRA Projektentwicklung. The properties are located in Bochum (two assets), Duisburg and Oberhausen. Providing a total of 395 childcare spots, they are or will be occupied on 30-year terms leases by Step Kids Education (Stepke), a blue-chip sponsor. Stepke operates a total of 25 day-nurseries in Germany. The facilities are scheduled for completion between the fourth quarter of 2021 and year-end 2022.

Hans-Joachim Lehmann, Managing Director at Warburg-HIH Invest, emphasised: “With the acquisition of eight day-nurseries within a six-month period and with negotiations under way to acquire another two assets, Warburg-HIH Invest achieved the necessary market penetration to ensure the continued growth of the investment fund, and has built up the know-how needed to manage them. What we aim for in this context is a partnership-like cooperation with professional developers.” Lehmann added that the positive experiences made have already prompted the company to start devising another investment fund with similar investment profile.

NRW counts among the German states with the greatest shortfall in child care spots. The care gap describes the difference between the demand rate (i. e. the number of spots actually needed) and the care ratio (i. e. the number of children actually looked after). It amounts to 19 percent in NRW, the widest gap of any state except Bremen (20.2 percent). This documents the enormous present and future requirement for daycare options for children of preschool age in NRW.

According to calculations done by the IW German Economic Institute in Cologne, the shortfall in child care spots in Germany adds up to nearly 320,000 nationwide. And this even though cities and communities created around 155,000 new day-care spots since 2014, bringing the total up to 818,000 spots. The steady growth in the number of women who accept gainful employment makes it reasonable to expect the number of children requiring day care to keep going up. This in turn translates into additional demand for childcare facilities.

“Through the Warburg-HIH Invest, we are paving the way for important investments in the social infrastructure in Germany,” said Alexander Eggert, Managing Director at Warburg-HIH Invest. “The demand for child care spots could hardly be stronger. The investment fund is primarily intended for savings banks. It offers long-term income and meets important ESG criteria,” Eggert said. “Environmentally friendly new buildings and a focus on training and educating children constitute an excellent basis for sustainable real estate investments in a positive market environment.”

The legal and tax due diligences for the acquisitions in NRW were undertaken by the law firm of Heuking Kühn Luer Wojtek (Hamburg), the technical due diligence by ES Enviro Sustain GmbH (Berlin).

“With the acquisition of ten day-nurseries within a six-month period, Warburg-HIH Invest achieved the necessary market penetration to ensure the continued growth of the investment fund, and has built up the know-how needed to manage them. What we aim for in this context is a partnership-like cooperation with professional developers.”

Hans-Joachim Lehmann, Managing Director
Warburg HIH Invest

“Through the Warburg-HIH Invest, we are paving the way for important investments in the social infrastructure in Germany.” “The demand for child care spots could hardly be stronger. The investment fund is primarily intended for savings banks. It offers long-term income and meets important ESG criteria.” “Environmentally friendly new buildings and a focus on training and educating children constitute an excellent basis for sustainable real estate investments in a positive market environment.”

Alexander Eggert, Managing Director
Warburg HIH Invest



HIH Property Management cuts CO2 emissions further


HIH Property Management cuts CO2 emissions further

  • 51 (+7) properties now supplied with carbon-neutral natural gas
  • Annual savings of 2,161 tonnes of CO2
  • Around EUR 577,000 set to be saved in partnership with Argentus by 2024

Hamburg, 16. July 2020 – HIH Property Management GmbH (HPM), one of Germany’s leading providers of commercial property management solutions, continues to reduce the carbon emissions of the properties it manages. Energy provider E.ON has been supplying 51 properties (+7 year on year) with carbon-neutral gas since 1 June 2020, saving an average of 2,161 tonnes of CO2 emissions per year. This means that 50 percent of properties managed by HPM now use green electricity or carbon-neutral gas. HPM manages a total of around 419 buildings.

HPM joined forces with operating costs specialists Argentus to optimise its gas supply. Argentus pooled together the necessary supply volume in a tendering process and awarded the contract to E.ON Energie Deutschland (E.ON). Under the contract, the carbon emissions of the HPM portfolio will be cut by an average of 2,161 tonnes in 2020 and by a total of 10,805 tonnes between 2020 and 2024. This equates to cost savings of EUR 577,000 by 2024 compared to the previous gas supply agreement.

“Together with Argentus we began a nationwide tendering process for a part of our portfolio to secure the same supplier for all properties,” says Christian Kyple, Member of Board at HIH Property Management. “By pooling the tender we were able to achieve some major cost savings as a bulk buyer, despite the expense of carbon-neutral natural gas.”

The contract with energy supplier Lichtblick was also extended until the end of 2022, and the number of properties supplied with green electricity increased by 152 to 405. Last year, the majority of the portfolio switched to green electricity.

“Together with Argentus we began a nationwide tendering process for a part of our portfolio to secure the same supplier for all properties. By pooling the tender we were able to achieve some major cost savings as a bulk buyer, despite the expense of carbon-neutral natural gas.”

Christian Kyple, Member of Board
HIH Property Management



Warburg-HIH Invest continues to implement its sustainability strategy with the smart meter roll-out


Warburg-HIH Invest continues to implement its sustainability strategy with the smart meter roll-out

  • In future, real estate energy consumption will be measurable in real time
  • Warburg-HIH Invest has commissioned Westbridge with the smart meter roll-out for its portfolio in Germany
  • Energy will be purchased from renewable energy sources
  • Sustainability constitutes an integral element of the investment process

Hamburg, 9. July 2020 – Warburg-HIH Invest Real Estate (Warburg-HIH Invest) is steadfastly pursuing the implementation of its sustainability programme. “Our aim is to manage our real estate portfolios in the most resource and energy efficient manner possible. We ensure the strict adherence to design options that optimise environmental impact as well as always taking social components into account,” says Söhnke Erichsen, Head of Corporate Management and Head of ESG at Warburg-HIH Invest.

Sustainability constitutes an integral element of the investment process at Warburg-HIH Invest. This includes, for example, mandatory environmental due diligence throughout the purchasing process, sustainable energy purchasing and the inclusion of sustainability clauses in the lease agreements – known as green leases.

With the digitalisation of the metering point operation representing another key element of the overall ESG strategy, Warburg-HIH Invest has commissioned the operating costs specialist Westbridge with this undertaking. Westbridge equips Warburg-HIH Invest’s German sub-portfolio with intelligent metering systems. These smart meter roll-outs, as they are known, will be carried out at the electricity and gas supply points of 139 properties in total. The portfolio is mainly comprised of commercial properties with a gross lettable space of more than one million square metres and a volume of EUR 6 billion.

“We see the comprehensive optimisation of our properties’ energy consumption and the collection of exhaustive building data as an important step towards the successful implementation of our ESG strategy,” says Alexander Eggert, Managing Director of Warburg-HIH Invest. In addition to the introduction of smart meters, Warburg-HIH Invest is also gradually converting its portfolio to green electricity and gas supply.

As part of its mandate, Westbridge will be supporting the entire process and implementing a uniform and digital energy management system for all 139 properties. Going forward, this will allow Warburg-HIH Invest to monitor the properties’ energy consumption in detail and in real time, enabling the direct identification of unexpected excess consumption. “Following a portfolio analysis, we were able to collect all relevant data on energy supply and uncover potential savings. Our job now is to implement tailor-made measures to significantly reduce the carbon footprint of the properties,” says Rüdiger Salzmann, Managing Director of Westbridge.

Smart metering represents a central element in the digitalisation of German meter infrastructure, with the aim of intelligent measuring devices (smart meters) replacing existing meters in all German households by the year 2032. Some 1.9 million end users will be affected by the mandatory replacement of the mechanical meters.

„Our aim is to manage our real estate portfolios in the most resource and energy efficient manner possible. We ensure the strict adherence to design options that optimise environmental impact as well as always taking social components into account.”

Söhnke Erichsen, Head of Corporate Management and Head of ESG
Warburg HIH Invest

“We see the comprehensive optimisation of our properties’ energy consumption and the collection of exhaustive building data as an important step towards the successful implementation of our ESG strategy.”

Alexander Eggert, Managing Director
Warburg HIH Invest

“Following a portfolio analysis, we were able to collect all relevant data on energy supply and uncover potential savings. Our job now is to implement tailor-made measures to significantly reduce the carbon footprint of the properties.”

Rüdiger Salzmann, Managing Director
Warburg HIH Invest