Warburg-HIH Invest Sets up New Office Fund for Fast-Growing German Cities

Fund is planned to have a minimum volume of 400 million euros

Dividend yield of 4 percent targeted

Equity investments starting at 5 million euros

Hamburg, 21. May 2019 – Warburg-HIH Invest Real Estate (Warburg-HIH Invest) is launching another open-ended special AIF. Called “Deutschland Selektiv Immobilien Invest II” the investment fund is intended to invest in core / core+ office properties in selected fast-growing cities in Germany. An add-on option permits investments into other types of use up to a limit of 30 percent of the total assets. Assuming a minimum fund volume of 400 million euros and a gearing ratio of no more than 50 percent on the fund level, the dividend yield is expected to equal 4 percent. Institutional players may invest in the fund by acquiring equity interests of 5 million euros or more.

“The fund invests in core and core-plus properties worth 20 million euros or more in cities characterised by a fast demographic and economic growth,” said Alexander Eggert, Managing Director of Warburg-HIH Invest. “The selection of location and asset relies on a multi-variable procedure that considers the inflow of young population cohorts as well as the concentration of strong technology companies or the local demand for office accommodation.” The approach was already employed to identify Bremen, Bonn, Darmstadt, Dortmund and Dresden as possible investment destinations.

With its new fund “Deutschland Selektiv Immobilien Invest II,” Warburg-HIH Invest reconnects to a previous investment fund. Subject to the same investment criteria, the “Deutschland Selektiv Immobilien Invest I” fund has generated an average dividend yield of 11.7 percent annually. The average draw-down speed for investors was around 6 months. “Since this product is more or less fully placed, with over 200 million euros in capital commitments, and since our investment strategy delivers an excellent performance for our investors at a time when we continue to believe in the long-term promise of the investment policy, we decided to launch another vehicle with no maturity cap,” said Carsten Demmler, Head of Capital 2/2 Management at Warburg-HIH Invest.

“The fund invests in core and core-plus properties worth 20 million euros or more in cities characterised by a fast demographic and economic growth. The selection of location and asset relies on a multi-variable procedure that considers the inflow of young population cohorts as well as the concentration of strong technology companies or the local demand for office accommodation.”

Alexander Eggert, Managing Director

Warburg HIH Invest

“Since this product is more or less fully placed, with over 200 million euros in capital commitments, and since our investment strategy delivers an excellent performance for our investors at a time when we continue to believe in the long-term promise of the investment policy, we decided to launch another vehicle with no maturity cap.”

Carsten Demmler, Head of Capital Management

Warburg HIH Invest