ONE STRONG GROUP. MANY EXPERIENCED EXPERTS. TOGETHER, WE CONNECT REAL ESTATES WITH INVESTMENTS.

Real Estate

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, 882 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 Real Estate purchases H-LAB office and laboratory complex in Potsdam from PROJECT Immobilien


Warburg-HIH Invest Real Estate purchases H-LAB office and laboratory complex in Potsdam from PROJECT Immobilien

  • Successful transaction for H-LAB office and laboratory complex
  • Am Mühlenberg 9, 14476 Potsdam-Golm
  • Buyer: Warburg-HIH Invest Real Estate GmbH
  • Seller: PROJECT Immobilien Gewerbe AG

Potsdam, 23 June 2021 – PROJECT Immobilien Gewerbe AG has sold its H-LAB office and laboratory complex at Am Mühlenberg 9 in Potsdam to Warburg-HIH Real Estate (Warburg-HIH Invest). The project located at the Potsdam Science Park has a gross lettable area of approximately 4,600 square metres and is currently under construction. It is scheduled for completion in the fourth quarter of 2021. Warburg-HIH Invest concluded the investment as part of a club deal for two investors. PROJECT Immobilien DLA Piper provided legal advice. On the buyer’s side, legal and tax due diligence was performed by Ashurst LLP from Frankfurt am Main, while ES EnviroSustain from Berlin took charge of technical and ESG due diligence.

Hans-Joachim Lehmann, Managing Director of Warburg-HIH Invest, said, “We succeeded in acquiring a prestigious new project with an off-market deal. An anchor tenant with a strong credit rating guarantees a secure and longterm cash flow and attractive yields. The property also has state-of-the-art technical facilities and flexible floor plans, making it perfect for alternative uses as well.”

“Science and education are the keys to a successful future,” said Alexander Klein, Director of Global Sales at PROJECT Immobilien Gewerbe AG. “Locations where such activities can flourish are extremely exciting for us as project developers, and are in high demand among investors. Our success at acquiring the University of Potsdam as the anchor tenant is a testament to our focus on forward-looking locations and outstanding building concepts.”

The location at Potsdam Science Park offers an ideal platform for networking with other companies and researchers from a variety of different industries of the future. The Potsdam Science Park is an important science and research location in Brandenburg and offers excellent links to regional and long-distance rail services.

PROJECT Immobilien Group based in Nuremberg has been successfully realising residential and commercial properties in Berlin, Hamburg, Munich, Nuremberg, the Rhine-Main region, Rhineland and Vienna for 25 years. PROJECT Immobilien Gewerbe AG is responsible for managing the group’s commercial properties all over Germany.



Warburg-HIH Invest acquires day-care centres for Warburg-HIH Zukunft Invest special fund


Warburg-HIH Invest acquires day-care centres for Warburg-HIH Zukunft Invest special fund

  • Four day-care centres with a total of 23 groups of children
  • Properties located in the German cities of Bremen, Duisburg and Moers
  • Long-term rental agreements with centre operators Step Kids Education and Zaubersterne
  • Properties sold by AUDERE EQUITY
  • Projects scheduled for completion this year and by mid-2022

Hamburg, 21 June 2021 – Warburg-HIH Invest Real Estate (Warburg-HIH Invest) has successfully acquired a portfolio of four day-care centres from AUDERE EQUITY. The two-storey properties are being constructed as part of a new development in Bremen. One building is located in the Hemelingen district and houses six groups with a gross lettable area of 1,440 square metres, and the other is in the Huchting district, with eight groups across a gross lettable area of just under 1,130 square metres. The portfolio also features two fully renovated buildings in North Rhine-Westphalia: in Duisburg (five groups with gross lettable area of roughly 850 square metres) and in Moers (four groups with gross lettable area of 715 square metres). The properties will form part of the Warburg-HH Zukunft Invest open-ended special AIF. The four day-care centres are rented by their current operators under long-term rental agreements. The three centres in Bremen and Moers are run by Step Kids Education, and the facility in Duisburg is operated by Zaubersterne. All of the day-care centres are located in established residential areas on large plots of land with child-friendly outdoor spaces. Three properties are scheduled for completion before the year is out and the centre in Bremen’s Huchting district is expected to be finished by the second quarter of 2022. The transaction was completed in the form of an asset deal. The parties have agreed not to disclose the price of the sale.

Jens Nagelsmeier, Head of Transaction Management Retail at Warburg-HIH Invest, says: “We have succeeded in expanding our fund’s portfolio with the addition of four properties of outstanding quality. The centres are run by experienced and professional companies with highly acclaimed learning concepts. We remain on the lookout for properties to add to our portfolio for our investors.”

Horst Lieder, CEO of AUDERE EQUITY, says: “Day-care is crucial to maintaining a positive work-life balance. We firmly believe that day-care centres develop efficiently and in a user-oriented manner. The needs of both operators and families can be met quickly with high quality solutions. At the same time, we are demonstrating that investment in this ESG-compliant asset class can be profitable and sustainable for investors with high standards.”

Bremen is the 11th largest city in Germany and has significant demand for child day-care. The underlying conditions of a strong demand surplus and city-governed demand planning are favourable to day-care centre operators. The district of Hemelingen, home to one of the Bremen day-care centres, offers a high standard of living thanks to its excellent infrastructure. Besides Hemelingen’s good transport links and wide variety of retail opportunities, the district also features a number of private- and public-sector services, schools and cultural attractions. The district of Huchting is a residential area located on the border with Lower Saxony. It is in close proximity to a number of local recreational areas, making it popular among families.

The number of day-care places in North Rhine-Westphalia is also significantly short of the current demand. North Rhine-Westphalia offers a high-quality subsidy framework for day-care centre development. The town of Moers is located in the Lower Rhine region just outside Düsseldorf. The day-care centre is being constructed in the district of Moers-Mitte, which has around 15,000 inhabitants. The area is surrounded by numerous schools and homes. The Duisburg project is located in the district of Neumühl at the city’s northern boundary, with a number of primary and secondary schools nearby.

Anwaltskanzlei Heuking Kühn Luer Wojtek, Hamburg, was responsible for legal and tax due diligence. C.P.H. PROJEKT- UND BAUMANAGEMENT (CPH), Hamburg, conducted technical and ESG due diligence.

“We have succeeded in expanding our fund’s portfolio with the addition of four properties of outstanding quality. The centres are run by experienced and professional companies with highly acclaimed learning concepts. We remain on the lookout for properties to add to our portfolio for our investors.”

Jens Nagelsmeier, Head of Transaction Management Retail Warburg-HIH Invest

“Day-care is crucial to maintaining a positive work-life balance. We firmly believe that day-care centres develop efficiently and in a user-oriented manner. The needs of both operators and families can be met quickly with high quality solutions. At the same time, we are demonstrating that investment in this ESG-compliant asset class can be profitable and sustainable for investors with high standards.”

Horst Lieder, CEO AUDERE EQUITY



European Real Estate Markets: Core Assets and Germany Coping Comparatively Well with the Crisis


European Real Estate Markets: Core Assets and Germany Coping Comparatively Well with the Crisis

  • Real estate markets suffer no historic set-back as a result of the pandemic
  • European office market rating: Berlin, Munich, Frankfurt among the top 10, with Berlin taking the lead
  • US and Polish residential markets more attractive than Germany’s residential investment market
  • Affordable housing in the Netherlands a growth market interesting for international investors

Berlin, 17. June 2021 – Which countries and segments will be of interest to real estate investors after the coronavirus pandemic? This was the question discussed during an online press conference attended by Prof. Dr. Felix Schindler, Head of Research at Warburg-HIH Invest, Karsten Jungk, Managing Director and Partner at Wüest Partner Deutschland, Pepijn Morshuis, the CEO of Trei Real Estate AG, and Björn Kombächer, Head of Investor Relations at Engel & Völkers Asset Management.

The pandemic, rather than producing a slump of historic proportions, has generally increased the degree of differentiation. The transaction volumes on the European property markets remain on a historically high level despite the coronavirus pandemic. Especially countries in Eastern Europe (-14.1 percent) and the Nordics (-13.2 percent) registered only modest year-on-year decreases in transaction volumes in 2020. Real estate markets that have been harder hit, by contrast, include those in France (-35.8 percent), Italy (-31.9 percent) and particularly Spain (-52.2 percent). In Germany and the United Kingdom, the countries with the two most prominent real estate markets in Europe, the drop in transaction volumes was comparatively moderate at -22.8 percent and -17.4 percent, respectively. Across all countries, the steepest drops were registered in the hotel segment, whereas demand in the residential and logistics segments generally remained strong.

For the same reasons, their vacancy rates increased but moderately. Only in the Eastern European markets and London (City) did vacancy rates soar between Q1 2020 and Q1 2021, climbing from 7.2 percent to 11.8 percent. Similarly, vacancies in Paris increased from 2.0 percent to 4.5 percent, even though the absolute level remains very low. Other markets in Europe that proved stable, aside from German cities, include Vienna and Amsterdam as well as the Nordic markets.

Prof. Dr. Felix Schindler, Head of Research at Warburg-HIH Invest, offered the following outlook for the future market performance: “The investment pressure among investors, and with it the demand on the real estate markets, remains as high as ever in the absence of investment alternatives, although it is safe to expect a stronger differentiation in terms of micro- and macro-environments, types or use, and asset characteristics. We also expect demand for core products to go up because of the increasing risk aversion among investors, and because the market environment is defined by a heightened level of uncertainty. Generally speaking, real estate investments are likely to gain even higher prominence within investor portfolios, given the persistently low interest rate environment. Even the rise in inflation rates is unlikely to change that. As far as the returns on real estate investments go, it is in any case more important how the monetary policymakers will respond to increased inflation. The ECB, for one, has yet to adopt a clear position on the subject. I could easily see us heading for a period in which a permanently low level of interest will coincide with a higher rate of inflation than we saw during the past decade. I therefore believe that the capital will continue to flow into the real estate markets. The bond markets still represent no genuine alternative. Even if the returns they offer were to rise, it would be felt on the financing side only without prompting investors to make any major adjustments to their asset allocations.”

Three German Cities among Top 10, with Berlin Taking the Lead

A rating compiled by Wüest Partner after investigating 30 office locations in Europe, reached a similar conclusion. Based on various influencing factors, the survey analysed which cities coped comparatively well with the coronavirus crisis and may, in some cases, benefit from the accelerated pace of the structural change. Karsten Jungk, Managing Director and Partner at Wüest Partner, said: “Investors are adjusting their investment focus because of the consequences of the coronavirus pandemic for the real estate market. Our rating identifies those European metropolises where the outlook for successful real estate investments has improved.” The analysis considers 16 metrics, including the number and percentage of employees in forward-looking industries, the unemployment rate, the trend in office take-up and vacancy, as well as the prime rents.

“With Berlin, Munich and Frankfurt, no less than three German metropolises made the top ten in the overall ranking, the two top spots being claimed by the federal capital and the Bavarian state capital,” Jungk added. Next in line are Stockholm, Oslo, Amsterdam, Helsinki, Rotterdam, Zurich, Frankfurt and London.

According to the Wüest Partner ranking, Berlin is currently the most attractive city for investments in the office real estate market. “Germany’s first city is characterised by comparatively low vacancy rates and a quick absorption of new floor space coming onto the market. In addition, the share of forward-looking industries is well above average on the city’s labour market while the office rental market offers a relatively large number of options for entry-level investments,” Jungk went on to say. Munich, the runner-up, scored so highly because of its swift absorption of floor space, its healthy vacancy level, and its low unemployment rate. Stockholm, Oslo and Amsterdam offer investors attractive yield rates of more than 3.3 percent and 3.2 percent, respectively. Stockholm shows a large share of forward-looking industries, which also claim market shares of over 20 percent in Oslo and Amsterdam. In Frankfurt am Main, which placed ninth in the ranking, the forward-looking industries account for 19.2 percent of the market, a share nearly as high.

Residential Real Estate Markets in the US and Poland are Attractive Alternatives

Trei Real Estate is an internationally active company that develops residential real estate in Germany, Poland and the United States. Pepijn Morshuis, the CEO of Trei Real Estate, said: “An international comparison reveals that there are several residential real estate markets more attractive than Germany’s residential investment market. This is particularly true in regard to yield rates. For instance, prime yields of residential real estate equal 5.25 percent in Poland and 5.5 percent in the United States, more than twice as high as in Germany, where the going rate is 2.5 percent.”

In Poland, however, an open housing market is only just emerging. Morshuis elaborated: “As a result, there is currently a wide gap between supply and demand. The supply side remains small, with demand exceeding it by far. Many investors currently enter the market with the rationale of investing early on in the cycle and buying at moderate prices. Another important difference to Germany: The body politic supports the development of new-build housing. This is sadly not always the case in Germany.”

If you take a look across the big pond, you will find that the US housing market offers high yield rates. But it also has its own set of challenges. Morshuis, the head of Trei, commented: “Lease terms are very short here, and tend to be signed for fixed terms of twelve months. The high tenant churn rate translates into a high management effort for residential real estate. The opportunities that present themselves here are attributable to demographic growth and the fact that the rental market is largely unregulated.”

Growing Housing Shortage in the Netherlands

Engel & Völkers Asset Management considers the Dutch housing market particularly interesting. “So far, the Dutch economy has coped splendidly with the coronavirus pandemic. In the residential real estate sector, we have identified three main drivers for a sustained upward trend: the short supply in residential accommodation, especially of the affordable type, the demographic growth, and the stable rent performance,” said Björn Kombächer, Head of Investor Relations at Engel & Völkers Asset Management. As it is, the Netherlands have a shortfall of 300,000 residential units – a challenge that will be exacerbated by the fact that the country is expected to add another million to its population total by 2035. Young people have a particularly hard time finding suitable accommodation, with roughly 268,000 households already affected.

Unlike in Germany, only a small fraction of the available rental listings are entirely without regulatory constraints. The new-build housing sector breaks down into social housing that is earmarked for low-income groups, the rent-controlled housing market, which is also intended for residents with low income but also for students, and the open market where privately owned flats are offered in the mid-price segment or in the free sector. All of the rents are inflation-indexed, and rental growth is possible in the medium-price segment and in the open-market segment, making these attractive for investors. Engel & Völkers Asset Management aims for a blend comprising all of the segments.

„The investment pressure among investors, and with it the demand on the real estate markets, remains as high as ever in the absence of investment alternatives, although it is safe to expect a stronger differentiation in terms of micro- and macro-environments, types or use, and asset characteristics. We also expect demand for core products to go up because of the increasing risk aversion among investors, and because the market environment is defined by a heightened level of uncertainty. Generally speaking, real estate investments are likely to gain even higher prominence within investor portfolios, given the persistently low interest rate environment. Even the rise in inflation rates is unlikely to change that. As far as the returns on real estate investments go, it is in any case more important how the monetary policymakers will respond to increased inflation. The ECB, for one, has yet to adopt a clear position on the subject. I could easily see us heading for a period in which a permanently low level of interest will coincide with a higher rate of inflation than we saw during the past decade. I therefore believe that the capital will continue to flow into the real estate markets. The bond markets still represent no genuine alternative. Even if the returns they offer were to rise, it would be felt on the financing side only without prompting investors to make any major adjustments to their asset allocations.“

Prof. Dr. Felix Schindler, Head of Research,
Warburg-HIH Invest

„Investors are adjusting their investment focus because of the consequences of the coronavirus pandemic for the real estate market. Our rating identifies those European metropolises where the outlook for successful real estate investments has improved.“ „With Berlin, Munich and Frankfurt, no less than three German metropolises made the top ten in the overall ranking, the two top spots being claimed by the federal capital and the Bavarian state capital." „Germany’s first city is characterised by comparatively low vacancy rates and a quick absorption of new floor space coming onto the market. In addition, the share of forward-looking industries is well above average on the city’s labour market while the office rental market offers a relatively large number of options for entry-level investments."

Karsten Jungk, Geschäftsführer und Partner,
Wüest Partner

„An international comparison reveals that there are several residential real estate markets more attractive than Germany’s residential investment market. This is particularly true in regard to yield rates. For instance, prime yields of residential real estate equal 5.25 percent in Poland and 5.5 percent in the United States, more than twice as high as in Germany, where the going rate is 2.5 percent.“ „As a result, there is currently a wide gap between supply and demand. The supply side remains small, with demand exceeding it by far. Many investors currently enter the market with the rationale of investing early on in the cycle and buying at moderate prices. Another important difference to Germany: The body politic supports the development of new-build housing. This is sadly not always the case in Germany." "Lease terms are very short here, and tend to be signed for fixed terms of twelve months. The high tenant churn rate translates into a high management effort for residential real estate. The opportunities that present themselves here are attributable to demographic growth and the fact that the rental market is largely unregulated."

Pepijn Morshuis, CEO,
Trei Real Estate

"So far, the Dutch economy has coped splendidly with the coronavirus pandemic. In the residential real estate sector, we have identified three main drivers for a sustained upward trend: the short supply in residential accommodation, especially of the affordable type, the demographic growth, and the stable rent performance."

Björn Kombächer, Head of Investor Relations,
Engel & Völkers Asset Management