HIH Invest launches institutional fund, acquires 14 properties in major investment move

HIH Invest Real Estate GmbH (“HIH Invest”) has announced the launch of a new institutional fund focused on residential real estate, securing a significant portfolio of 14 properties in collaboration with German housing giant, Vonovia. The fund’s total investment volume exceeds €630 million, encompassing nearly 1,600 high-end residential units and over 14,000 square meters of commercial space.

The fund is capitalized by a consortium of institutional investors, with HIH Invest holding a majority stake. Vonovia will manage the properties, while HIH Invest takes on the role of asset and fund manager.

The fund’s acquisitions include 14 newly built developments, 11 of which were sold by Vonovia, with the remaining three from Quarterback Immobilien AG. The properties cover a total lettable area of more than 127,000 square meters, of which 113,500 square meters are residential. The portfolio features a variety of housing options, including 1,592 apartments, student residences, and age-appropriate housing units. The developments are strategically located across key cities, including Berlin, Hamburg, Leipzig, Dresden, and Offenbach.

“These sites offer prime locations in well-established urban districts with strong public transport links, close to shopping centers, schools, and healthcare facilities. The buildings boast high-end finishes, including parquet flooring, underfloor heating, and large windows, and meet rigorous energy efficiency standards such as KfW 55, KfW 55 EE, and EnEV. Several properties are also targeting DGNB Gold certification for sustainability,” said Felix Meyen, Managing Director of HIH Invest.

The new fund allows HIH Invest to broaden its portfolio in a challenging market, with residential real estate emerging as a stable and growing asset class. “The German rental property market continues to offer resilient investment opportunities with strong cash flow potential,” noted Alexander Eggert, Managing Director of HIH Invest. “This fund strengthens our position in the market by delivering a product that aligns with current demand, particularly in the energy-efficient housing sector.”

The fund will also adhere to Article 8 of the EU Sustainable Finance Disclosure Regulation, ensuring compliance with stringent environmental standards. Vonovia will guarantee initial rental occupancy for both residential and commercial units.

Carsten Demmler, Managing Director at HIH Invest, highlighted the appeal for investors: “We are delighted to offer this excellent investment opportunity, with a strong risk-return profile, to our institutional investors. Our partnership with Vonovia, Germany’s largest housing company, further underscores the strength of this initiative and represents the first step in a larger collaboration.”

Legal and tax advice for the transaction was provided by Ashurst, while Drees & Sommer conducted technical and ESG audits. Commercial due diligence was managed by BNP Paribas Real Estate Consult.

This major acquisition is set to bolster HIH Invest’s position in the residential real estate market, offering a solid foundation for future growth amid rising demand for sustainable, energy-efficient living spaces.