Warburg-HIH Invest’s “TOP 7” Fund is Fully Invested after Acquisition of “Hanse Forum”

Hamburg, 1. August 2018 – Warburg-HIH Invest Real Estate acquired the Hanse Forum office property in Hamburg. The seller is Standard Life Investments European Real Estate Club L.P II (Euro Club II). An equity interest of nearly 50 percent in the property was added to the “Warburg-HIH TOP 7 Deutsche Metropolen Immobilien Invest” special AIF. The other interest of roughly 50 percent is earmarked for the “Deutschland Selektiv Immobilien Invest” fund. With its equity interest in Hanse Forum factored in, the TOP 7 fund reached its envisioned total investment volume of c. 400 million euros, having employed its 200 million euros in equity capital to build up a high-end real estate portfolio as planned. It was agreed not to disclose the purchase price.

Raised in 2002, the Hanse Forum scheme with its gross lettable area of 15,000 square metres is one of the most conspicuous new-build office buildings in downtown Hamburg. WeWork, a provider of collaborative workspaces, signed a lease for 7,800 square metres over a 20-year term plus renewal option last year. At the moment, the weighted average unexpired lease term in the multi-tenant building is 12.3 year WALT while the occupancy rate is 96 percent. “What makes Hanse Forum so attractive is particularly its central, dynamically growing location between the Springer buildings and the Stadthöfe complex. Moreover, the building boasts a robust tenant mix, a modern and flexible floor plan, a high-end interior fit-out and a sound parking space ratio. The asset thus demonstrates a sustainable value retention,” said Hans-Joachim Lehmann, Managing Director at Warburg-HIH Invest and head of the Transaction Management Germany unit.

“With the Hanse Forum added, the TOP 7 fund, which was launched about two years ago, achieved its planned investment target on behalf of its 19 investors, most of whom belong in the savings bank sector. In response to continued investor demand, Warburg-HIH Invest already launched its successor product, the ‘Warburg-HIH TOP 7 German Office Invest’,” said Alexander Eggert, Managing Director for Fund and Product Management at Warburg-HIH Invest. The open-ended special AIF is intended for investors of the savings bank organisation, superannuation schemes and foundations. The fund has an evergreen structure and a target return of up to 4.5 percent.

The open-ended special AIF “TOP 7 Deutsche Metropolen Immobilien Invest” for institutional investors was launched in collaboration with the NORD/LB state bank.

“What makes Hanse Forum so attractive is particularly its central, dynamically growing location between the Springer buildings and the Stadthöfe complex. Moreover, the building boasts a robust tenant mix, a modern and flexible floor plan, a high-end interior fit-out and a sound parking space ratio. The asset thus demonstrates a sustainable value retention.”

Hans-Joachim Lehmann, Managing Director for Transaction Management

Warburg HIH Invest

“With the Hanse Forum added, the TOP 7 fund, which was launched about two years ago, achieved its planned investment target on behalf of its 19 investors, most of whom belong in the savings bank sector. In response to continued investor demand, Warburg-HIH Invest already launched its successor product, the ‘Warburg-HIH TOP 7 German Office Invest’.”

Alexander Eggert, Fund Manager and Managing Director for Fund Management and Product Management

Warburg HIH Invest