Warburg-HIH Invest Real Estate is launching its next open-ended fund, Warburg-HIH Deutschland Wohnen Invest, for residential real estate investments.
The residential real estate fund will target an investment volume of approximately €400 million. It is planned to yield a dividend of 3.25 to 3.75 percent annually.
As an institutional fund, it is intended mainly for regional banks and savings banks. The minimum subscription amount is five million euros.
“Residential investments will have a sustained stabilising effect within the portfolio. After all, it was the German housing market that proved extremely stable even during the COVID-19 pandemic. With that in mind, we offer this component to our investors as sector-specific diversification for their investment strategy in the real estate segment,” said Carsten Demmler, Managing Director of Warburg-HIH Invest.
The fund’s investment focus is on new-build housing developments in fast-growing residential locations inside metro regions and in stable standalone regions.
“What counts as important selection criteria in this context, in addition to demographics and economic trend, are local infrastructure and convenient access to the workplace. Existing properties can complement the portfolio if quality and returns match the fund’s objectives. Cities potentially eligible for acquisitions are, for example, Aachen, Bamberg, Bonn or Berlin’s gravy belt. But we will not prioritise investments in the ‘Big Seven’ cities,” said Demmler.