Warburg-HIH launches new German-focused real estate special AIF

Warburg-HIH Invest has launched a new real estate special AIF of unlimited term that is supposed to invest exclusively in office property in the German metropolises of Berlin, Munich, Frankfurt, Hamburg, Düsseldorf, Cologne and Stuttgart. The planned investment volume equals no less than €400 million ($470 million).

Alexander Eggert, managing director of Warburg-HIH Invest, suggested that even a dimension of up to €1 billion ($1.17 billion) is conceivable. “The main target group on the investor side includes savings banks as well as other institutional investors with persistently large investment requirements. Clients of this type are primarily interested in regular dividends and simultaneously in a continuation of their investments.”

Accordingly, at least 70 percent of the investment total of the “Top 7 German Office Invest” is earmarked for core assets occupied on long-term leases. The remaining share can be spent on core-plus properties with letting requirements and higher return potential.

“By defining this mix, we intend to achieve a dividend yield between 3.5 and 4.5 percent,” said Eggert. “Decisive for the success of such a product are a demand for office accommodation that will remain strong in the targeted top cities in the foreseeable future, positive rental growth and an attractive product pipeline.”

He added that Warburg-HIH Invest brings a convincing and relevant track record to this project. As recently as the summer of this year, it took no more than 30 months to commit the capital of an investment fund of €400 million ($470 million) with a comparable investment profile in the inner-city or airport locations of Hamburg, Berlin, Düsseldorf, Cologne and Frankfurt. The dividend yields exceed the projected figures.

Warburg-HIH Invest Real Estate (Warburg-HIH Invest) is a real estate investment manager serving institutional investors and covering the entire spectrum of national and international real estate investments.