Corporate overview

HIH Invest Real Estate (“HIH Invest”) is one of the leading investment managers for real estate and infrastructure in Germany and across Europe. We find, develop and manage real estate and investments under a forward-looking approach in the best interest of our clients. Decades of experience, proximity to real estate markets and our strong network enable us to identify real estate opportunities and to act on them quickly during the right market cycle.

Around 280 institutional clients place their trust in HIH Invest. They benefit from the expertise of our specialists in structuring, product development, property management and infrastructure/renewables, ensuring investment solutions tailored to their needs. HIH Invest maintains a presence in eight different locations across Europe.

As part of the HIH Group, we cover the entire investment value chain with in-house capacities. The early recognition of market changes, the implementation of regulatory requirements and forward looking digital management are part of our corporate philosophy. At the moment, we have 25 billion euros worth of assets under administration.

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 allows 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 know-how, in-depth market knowledge and broad-based network.

Sector forecasts

INDUSTRIAL: 

Demand for space has stabilized and remains at last year’s level – with clear differentiation by location and sector. The defense sector is expected to support demand going forward. Prime rents are moving sideway, while ESG considerations and portfolio management gain importance in logistics leasing. Overall, logistics markets show sideways rent movement and steady take-up. Long-term, megatrends continue to support demand and pricing, though affordability constraints are becoming more visible.

OFFICE: 

The post-COVID trend persists: modern, ESG-compliant CBD space remains scarce, driving wider gaps in rents, vacancies, and incentives across markets. Prime rents in Western Europe stay high and stable, with large leases highlighting the shift toward central offices. Take-up is slightly above last year’s level, although a weak economy and ongoing tenant downsizing continue to dampen overall activity.

RESIDENTIAL: 

In many European cities, supply remains particularly constrained, while demand continues to rise – a trend further reinforced by ongoing urbanization. In general, high construction costs, regulatory hurdles, and limited land availability are contributing to a structural and long-term supply shortage. These market imbalances are expected to continue driving significant rental growth in the coming years, a trend that is particularly evident in Europe’s major metropolitan areas.

RETAIL: 

Food retailers remain among the strongest tenant groups with robust business models, securing attractive locations long term. Leading chains, backed by solid capital, continue to optimize supply chains, including vertical integration. Daily needs and FMCG retailers show resilience to online competition.

Strategic corporate development

HIH Invest Real Estate designs and manages structured real estate investment vehicles in accordance with the German Capital Investment Act (KAGB), enabling institutional investors to access European real estate markets. Our products are tailored to investors’ specific needs and complemented by a flexible, customizable range of services. 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

Fund performance is calculated according to the standard BVI method used for regulated German special AIFs. This approach is based on investment unit prices and therefore reflects all fixed costs inherent to the fund. The BVI performance results of our funds are submitted to MSCI for inclusion in sectorwide benchmark analyses (SFIX).

In addition, we define performance targets together with our clients, based on IRR and income returns at both 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.