Corporate overview
HIH Invest Real Estate is one of the leading investment managers for real estate in Germany and Europe. We adopt a future-oriented approach to finding, developing and managing properties in the interests of our clients. Decades of experience, proximity to the real estate markets and a tight-knit network allow us to identify real estate opportunities and quickly implement them in the right phase of the market. Around 280 institutional clients have entrusted their investments to HIH Invest Real Estate. Our specialists for structuring, product development, real estate management and market development all work to develop the right investment solutions for them.
Investment principles & strategy
We offer a broad spectrum of investment solutions. These range from risk-diversified real estate fund solutions pursuant to the German Investment Act – with a defined investment strategy, a varying country and sector focus and different risk profiles – to individual solutions for club deals or separate accounts depending on the respective risk/return profile of our investors. This gives institutional investors a chance to benefit from our profound real estate expertise and high degree of vertical integration, either by investing in intensely managed real estate products, with us effectively covering the lifecycle of a given property from end to end, or by taking advantage of selected components within the framework of individual mandates. Regardless of the solution chosen, HIH Invest Real Estate sets itself apart with its consistent customer orientation, extensive property knowhow, in-depth market knowledge and broad-based network.
Sector forecasts
INDUSTRIAL: Logistics and light industrial real estate are currently the most promising type of use in the real estate sector. Even without pre-letting, construction is continuing, while the purchase price adjustment is the most advanced of all types of use. Although the economic downturn has dampened demand for rental space, it has stabilised at pre-corona levels. Prime rents continue to grow, albeit at a slower pace. In the long term, megatrends will support demand for space and rent levels.
OFFICE: In the case of office properties, a distinction must currently be made between the submarkets and building qualities. In prime locations and buildings of outstanding quality, space is still in short supply on the rental market and prime rents are rising. In contrast, demand is falling noticeably in less favourable locations and outdated buildings. Investor interest is also distributed accordingly, albeit at a lower level overall.
RESIDENTIAL: The rental property market also continues to offer opportunities for investors. In Germany, the main arguments for investing in the residential property market are the predictable rental income and the rising demand for housing in the growth regions. The low level of new construction activity is further exacerbating the housing shortage, which is minimising the vacancy rate and causing rents to rise further. Investments in residential real estate provide relative independence from economic cycles.
RETAIL: Across Europe, the retail sector is benefiting from large-volume retail and portfolio transactions in the UK, France and Germany. Still, food retailers and drug stores ensure comparatively stable prospects for local retail parks and convenience centres. In Germany, insolvencies of well-known textile and shoe chain stores pose challenges for city centres and at the same time offer opportunities for shaping the city centre of the future.
INFRASTRUCTURE: Wind and solar power play a key role in Europe’s energy transition. The accurate predictability of electricity generation from a freely available resource, favourable production costs, rapid technological progress, and attractive market prices for electricity open up the possibility of green, high-return investments.
HEALTHCARE: Driven by the megatrend of demographic change, demand for healthcare assets will continue to increase as society continues to age. They help stabilise a portfolio as their performance is hardly subject to market fluctuations. The asset class offers predictable and stable cash flows for private and institutional investors alike.
Strategic corporate development
HIH Invest Real Estate designs and implements structured real estate investment solutions in accordance with the German Capital Investment Act (KAGB) so as to give institutional investors the opportunity to invest in European real estate markets. Our products are bespoken to investor needs and complemented by a flexible and customisable service spectrum. We maintain local offices in many cities in Germany and other parts of Europe and are continuously expanding our network. We see the combination of our extensive property know-how, network, services, local expertise, and in-depth market knowledge as the key to our continued success.
Performance verification
The fund performance is calculated using the standard BVI method for regulated German special AIFs. The BVI method employs investment fund prices and therefore takes account of all fixed costs inherent to the fund. The BVI performance results of our funds are delivered to MSCI for sector-wide benchmark analysis (SFIX). In addition, we agree performance targets with our clients based on IRR and income returns at fund and asset level.
COMPLIANCE STATEMENT
This document may not be reproduced or distributed without the express consent of HIH Invest Real Estate. In case of violation, we assume no liability whatever for possible damages incurred. The contents were carefully prepared by HIH Invest Real Estate in full confidence that the data provided to us by third parties is correct; however, we cannot assume any guarantee for the accuracy, completeness or currency of this information.
