HIH Invest Acquires Day Nursery in Gelsenkirchen

• Day nursery is located in the most populous district of Gelsenkirchen


• Gross lettable area of around 900 square metres


• Extensive outdoor area on a plot of around 4,300 square metres


• Lease signed by the City of Gelsenkirchen

Hamburg, 04. February 2022 – HIH Invest Real Estate GmbH (“HIH Invest”) just acquired a day nursery in Gelsenkirchen. The standing property will be added to the portfolio of the “Zukunft Invest” open-ended special AIF. It is a single-storey building with a lettable area of around 900 square metres that opened in 1994 and was expanded in 2012. The day nursery has a generously proportioned outdoor area on a plot of about 4,300 square metres. Lessee is the City of Gelsenkirchen on a fixed-term lease ending in 2032.

The property is located in Buer, the city’s greenest and most populous district, dominated by detached and semi-detached houses and smaller multi-family homes. The day nursery accommodates five groups. The group rooms have generous floor layouts, have direct access to the outdoor area, and give children the opportunity to pick their own pastimes and to occupy themselves with a wide variety of activities. Due to its sound building structure, the attractive outdoor area, and the convenient transportation access, the day nursery is highly popular among young families.

Day-care spots for toddlers and children below the age of six are in very short supply in Gelsenkirchen. A forecast by city hall predicts a shortfall of more than 1,000 child care spots by the year 2023. Jens Nagelsmeier, Head of Transaction Management Retail at HIH Invest, said: “Day nurseries offer stable long-term returns. Moreover, the default risk is very low because of the public-sector operator, and because the demand for day-care spots is permanently strong. About 120 families are on the waiting list for a day-care spot at the acquired day nursery alone.”

The “Zukunft Invest” fund invests in existing modern properties that have either undergone shell-and-core refurbishments or else are in good repair, as well as in property developments that will deliver new child care spots. The fund’s day nurseries are located in well-established residential areas with great transport links, and are defined by plots with open area well-suited for children. The acquisition of the day nursery in Gelsenkirchen brings the fund’s investment volume up to a total of c. 40 million euros. Together with the properties secured by purchase agreements, this already amounts to more than 60 million euros. The fund volume target is at least 100 million euros.

The legal and tax due diligences were conducted by the law firm of Heuking Kühn Luer Wojtek in Hamburg. Consulting Partners Hamburg was responsible for the technical and ESG due diligence.

“Day nurseries offer stable long-term returns. Moreover, the default risk is very low because of the public-sector operator, and because the demand for day-care spots is permanently strong. About 120 families are on the waiting list for a day-care spot at the acquired day nursery alone.”

Jens Nagelsmeier, Head of Transaction Management Retail
HIH Invest