HIH Invest Real Estate (“HIH Invest”) just acquired a property of 7,050 square metres from the Lange Family Office (LP MG GmbH) on behalf of its second logistics real estate fund. The acquisition took the form of an asset deal on behalf of “Deutschland+ Core Logistik Invest,” an open-ended special AIF managed by HIH Invest. The property on Hamburgring 30 in the city of Mönchengladbach in western Germany represents an ESG compliant newly constructed building that is fully let to an internationally active e-commerce service provider. The lease has a term of five years. Well-suited for alternative use, the modern new-build property is defined by high-end efficient specifications and can be partitioned into six separate warehouse sections. The floor area divides into 6,050 square metres of logistics space and 1,000 square metres of office space. The plot, which extends over 14,370 square metres, includes 55 car parking spots.
Carsten Demmler, Managing Director of HIH Invest, elaborated: “When we started buying property for our first logistics fund in 2020, we entered the logistics market at the right time. In little over a year, the fund achieved its targeted volume of c. 500 million euros, and is fully invested with 13 assets now.” The cash-on-cash yield currently equals 4.52 percent p.a., the time-weighted rate of return (BVI method) 9.82 percent annually. Nine of the properties are or will be DGNB Silver or Gold certified, the logistics asset in Oerlenbach being the latest to get its DGNB Gold certification.
“Demand for logistics facilities, which continued to grow even during the pandemic, has driven a stable if modest rental growth in this segment in addition to ensuring a persistently high take-up. Among our investors, demand for logistics real estate for the purpose of diversifying their portfolio allocations remains very strong – which is what motivated us to launch a successor fund,” added Alexander Eggert, Managing Director of HIH Invest.
Source: hih-invest.de on the 1st of June