HIH Invest has set up a new business unit that specialises in value-add investments.
The German fund manager said the new strategy is a response to growing demand in this segment from international investors, particularly for logistics and residential opportunities. It is also looking at buying offices.
The new business line will be headed up by Lars Bothe, who joins from Mirastar Real Estate Investment Management. Bothe worked for HIH Invest between 2015 and 2022, most recently as head of transaction management logistics.
HIH Invest has so far focused primarily on low-risk core and core-plus acquisition profiles. With its new business unit, the company is opening up to a broader range of investor groups, such as international investment managers and institutional investors without a dedicated platform in Germany as well as family offices without expertise in the sector.
For the individual investments, HIH Invest adopts primarily the role of operating or joint venture partner. The company serves as investment and asset manager. The new created value-add investments business unit will remain responsible for the implementation and execution of the business plan during the hold period of the asset.
"In the current market environment, we see attractive opportunities for counter-cyclical investment strategies for undermanaged standing assets with a sub-optimal tenancy situation, technical and ESG challenges and for certain development cases," said Felix Meyen, managing director at HIH.
HIH Invest's circa €105 million purchase of LogPark, a logistics property in Leipzig, in December, marks the start of the new business unit. HIH Invest and its joint venture partner Partners Group plan on refurbishing a former distribution centre. By adding two new assets with around 30,000 square meters, the asset will be formed into a high-end logistics space tailored to the demand structure of the regional logistics market.