Four new-build projects with a total of 247 flats completed in southern Hesse and Heidelberg
Four new-build projects with a total of 247 flats completed in southern Hesse and HeidelbergHIH Invest Real Estate (HIH Invest) announces the completion of four new-build projects in Hesse and Heidelberg. The properties in Heidelberg and Lorsch are each part of an individual mandate from an institutional investor. Two residential complexes in Hanau and Lampertheim were purchased in 2021 for the open-ended special property fund HIH Deutschland Wohnen Invest, which was launched in the same year.
The property in Heidelberg, located at Europaplatz 12-17 and Max-Planck-Ring 2-12, comprises 105 flats as well as retail and restaurant space with a total rental area of 9,300 square metres and 92 parking spaces. KfW 55 subsidies and subsidies from the L-Bank were granted for the investment. Around 20 per cent of the flats were built as subsidised housing. The property is part of the Europaplatz neighbourhood development, which is being developed by Gustav Zech Stiftung Management GmbH and forms the entrance to Bahnstadt Heidelberg directly at the main railway station. Only the retail space on the ground floor with 40 to 800 square metres is still available for rent.
The residential complex in Lorsch in the Bergstrasse district consists of three urban villas with a combined living space of around 3,200 square metres at Kriemhildenstrasse 3, 5 and 7. The project developer is M&M Bau GmbH, part of the Machmeier Group. The 38 flats have all already been let. The property includes 43 underground car parking spaces and 25 outdoor parking spaces. All flats have underfloor heating and either a balcony or a terrace with a garden area. The ensemble was also built to the KfW Efficiency House 55 standard.
The complex in Hanau, east of Frankfurt am Main, consists of four residential buildings at Chemnitzer Strasse 8 and Francoisallee 6-10 in the Lamboy district. The 79 residential units, twelve of which are still available to rent, are spread over a total rental area of around 6,600 square metres. All flats have a balcony or a (roof) terrace. The buildings constructed by project developer Kleespies meet the KfW Efficiency House 55 standard. They are connected to the district heating network of the city of Hanau and equipped with underfloor heating. Of the 95 underground parking spaces, 20 are equipped with electric charging facilities. The family-friendly residential area is located in a traffic-calmed street. There are shopping facilities, educational establishments and day-care centres nearby.
In Lampertheim in the Bergstrasse district of southern Hesse, an architecturally relaxed block of flats with around 2,000 square metres of living space has been built. Three of the 25 flats are still available. The residential building by project developer Salco Gesellschaft für Projektentwicklung und Baumanagement at Amselstrasse 10a and b also fulfils the criteria of the KfW 55 efficiency house standard. 18 underground parking spaces and 20 outdoor parking spaces as well as a high-quality outdoor area are part of the property. Quiet streets, nearby children's playgrounds and green spaces appeal primarily to families.
Tom Kircher, Senior Fund Manager at HIH Invest, comments: ‘The housing shortage in the Rhine-Main region is considerable, both in the direct catchment area of Frankfurt am Main and in the southern Hessian districts, where residents commute to the economically strong cities of Mannheim, Heidelberg, Ludwigshafen and Darmstadt in particular. We are therefore delighted to be able to add 247 attractive units to the rental flat market. We have noticed how great the demand for the flats is in the high marketing speed. Only around six per cent of them can still be rented."
Carsten Demmler, Managing Director of HIH Invest, adds: ‘The strong demand for residential space in metropolitan areas in particular ensures that residential property investments are proving to be remarkably resilient in the current situation on the property market. A whole series of market analyses from different perspectives suggest that the residential property segment offers investors attractive opportunities for earnings and value growth both now and in the future. These will not only benefit the HIH Deutschland Wohnen Invest and HIH Wohninvest Quartiere pool funds launched in 2021, but also the numerous individual mandates of institutional investors who are focusing on residential property in growth regions."
The HIH Deutschland Wohnen Invest fund is primarily aimed at savings banks and cooperative banks and invests in residential properties in economically strong locations in Germany with high tenant demand. With 16 properties, it creates a broadly diversified, energy-efficient portfolio with a stable cash flow in attractive residential locations in high-growth areas. Following the complete placement and the fulfilment of the investors' capital commitments, the fund will have reached its target volume of around EUR 500 million following the full purchase price payments. A further six completions of residential project developments are planned for the fund in the course of this year and five more in 2025.
The realisation of the four new-build projects was managed by HIH Projektentwicklung (HPE). HPE worked closely with the sellers on technical issues from the execution of the purchase agreement to the completion of the projects and continuously monitored and supported the construction progress. All residential complexes were completed on schedule.
HIH Real Estate is responsible for the asset management of the properties with its residential team and has managed the commissioning of the properties in advance and organised the initial letting of the residential units. The estate agent Hermann Immobilien was entrusted with letting the flats in Hanau, and Schüttler Immobilien with letting the flats in Lampertheim.
