- Follow-up acquisitions in the triple-digit millions already contractually secured for the fund
- Residential development consists of four buildings with 78 units
- Seller is property developer Kleespies
- Completion scheduled for fall of 2023
Hamburg, 31 August 2021 – Warburg-HIH Invest Real Estate GmbH (“Warburg-HIH Invest”) just acquired a residential development in Hanau on behalf of its institutional fund, “Warburg-HIH Deutschland Wohnen Invest.” It was sold by property developer Kleespies. The property is located in the district of Lamboy and will provide 78 residential units on a total lettable area of around 6,460 square metres. The four residential buildings to be created on Chemnitzer Str. 8 and Francoisallee 6-10 will be supplemented by 96 underground car parking spots. The completion is scheduled for the fall of 2023. Warburg-HIH Invest acquired the property through an asset deal within the framework of a forward funding arrangement. It was agreed not to disclose the selling price.
“Mere weeks after launching our latest residential investment fund, we were able to buy an attractive seed portfolio through this acquisition. Moreover, we contractually secured follow-up acquisitions with price tags in the triple-digit millions. This means that a major share of the 190 million euros we collected in the fundraising phase has already been invested,” said Nadine Robra, Team Leader Transaction Management Germany at Warburg-HIH Invest.
The fund will target an investment volume of approximately 400 million euros. It is planned to yield a dividend of 3.25 to 3.75 percent annually. As an institutional fund, it is intended mainly for regional banks and savings banks. The minimum subscription amount is five million euros. “This is an ESG strategy product in accordance with Article 8 of the Sustainable Finance Disclosure Regulation. The fund’s investment focus is both on standing residential properties and new-build housing developments in fast-growing residential locations inside metro regions and in stable standalone regions.
“The acquisition in Hanau meets all of our ESG criteria for the investment fund: a sustainable energy standard for the flats, and a family-friendly residential location with shopping venues, educational facilities and day nurseries close at hand,” added Tom Kircher, Fund Manager at Warburg-HIH Invest.
About 40 percent of the flats are planned as 2-bedroom flats with footprints of 56 to 88 square metres and flexible layout designs. Almost 60 percent of the units will be implemented as family-friendly 3- to 4-bedroom flats of varying dwelling sizes, ranging from 74 to 135 square metres. All of the flats will come with balcony or (roof) terrace. The flats will be hooked up to Hanau’s municipal district heating network, and feature underfloor heating. The buildings will meet the German KfW-55 sustainability standard (“Effizienzhaus 55”).
Klaus Niewöhner-Pape, member of the Investment Committee Residential at Warburg-HIH Invest, elaborated: “We welcome this investment as model example for the further fund build-up. In addition to the ESG aspects taken into account, the market-consistent concept design will deliver the intended performance for our investors.”
Lamboy is an up-and-coming district of Hanau. A small-scale settlement structure, convenient access to the central railway station and inner city, and diverse new-build construction projects in the vicinity are driving the ongoing development of the district. The acquired development is located on a pedestrianised street directly across from a primary school and adult education centre.
The city of Hanau, being part of the Rhine-Main metro region, has excellent regional and inter-regional motorway access, and is frequented by high-speed trains with service connections to destinations nationwide. Hanau also has a strong economic structure, being home, for instance, to the headquarters of the globally renowned tyres manufacturer Goodyear Dunlop and of the German technology conglomerate Heraeus.
Legal advice for the transaction was provided by the law firm of Heussen in Munich.
“Mere weeks after launching our latest residential investment fund, we were able to buy an attractive seed portfolio through this acquisition. Moreover, we contractually secured follow-up acquisitions with price tags in the triple-digit millions. This means that a major share of the 190 million euros we collected in the fundraising phase has already been invested.”
Nadine Robra, Team Head Transaction Management Germany Warburg-HIH Invest
“The acquisition in Hanau meets all of our ESG criteria for the investment fund: a sustainable energy standard for the flats, and a family-friendly residential location with shopping venues, educational facilities and day nurseries close at hand.”
Tom Kircher, Fund Manager Warburg-HIH Invest
“We welcome this investment as model example for the further fund build-up. In addition to the ESG aspects taken into account, the market-consistent concept design will deliver the intended performance for our investors.”
Klaus Niewöhner-Pape, Member of the Investment Committee Residential Warburg-HIH Invest
