WE ADOPT A FUTURE-ORIENTED APPROACH TO FINDING, DEVELOPING AND MANAGING PROPERTIES IN THE INTERESTS OF OUR CLIENTS

We understand the art of trading
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.
We facilitate individual investment solutions
Institutional investors have access to the full range of knowledge in relation to structuring, product development, real estate management and market development in order to find suitable investment solutions for them and support these on a long-term basis.
We are dedicated to properties
With our experts from the fields of asset and property management, letting, and project development, we manage properties comprehensively and understand them down to the smallest detail. With ten locations in Europe, we are always close to the properties.
We take on the challenges of the future. Early identification of changes in the market, implementation of regulatory requirements and future-oriented digital management are part of our corporate philosophy.
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Warburg-HIH Invest continues to implement its sustainability strategy with the smart meter roll-out

Warburg-HIH Invest continues to implement its sustainability strategy with the smart meter roll-out

  • In future, real estate energy consumption will be measurable in real time
  • Warburg-HIH Invest has commissioned Westbridge with the smart meter roll-out for its portfolio in Germany
  • Energy will be purchased from renewable energy sources
  • Sustainability constitutes an integral element of the investment process

Hamburg, 9. July 2020 – Warburg-HIH Invest Real Estate (Warburg-HIH Invest) is steadfastly pursuing the implementation of its sustainability programme. “Our aim is to manage our real estate portfolios in the most resource and energy efficient manner possible. We ensure the strict adherence to design options that optimise environmental impact as well as always taking social components into account,” says Söhnke Erichsen, Head of Corporate Management and Head of ESG at Warburg-HIH Invest.

Sustainability constitutes an integral element of the investment process at Warburg-HIH Invest. This includes, for example, mandatory environmental due diligence throughout the purchasing process, sustainable energy purchasing and the inclusion of sustainability clauses in the lease agreements – known as green leases.

With the digitalisation of the metering point operation representing another key element of the overall ESG strategy, Warburg-HIH Invest has commissioned the operating costs specialist Westbridge with this undertaking. Westbridge equips Warburg-HIH Invest’s German sub-portfolio with intelligent metering systems. These smart meter roll-outs, as they are known, will be carried out at the electricity and gas supply points of 139 properties in total. The portfolio is mainly comprised of commercial properties with a gross lettable space of more than one million square metres and a volume of EUR 6 billion.

“We see the comprehensive optimisation of our properties’ energy consumption and the collection of exhaustive building data as an important step towards the successful implementation of our ESG strategy,” says Alexander Eggert, Managing Director of Warburg-HIH Invest. In addition to the introduction of smart meters, Warburg-HIH Invest is also gradually converting its portfolio to green electricity and gas supply.

As part of its mandate, Westbridge will be supporting the entire process and implementing a uniform and digital energy management system for all 139 properties. Going forward, this will allow Warburg-HIH Invest to monitor the properties’ energy consumption in detail and in real time, enabling the direct identification of unexpected excess consumption. “Following a portfolio analysis, we were able to collect all relevant data on energy supply and uncover potential savings. Our job now is to implement tailor-made measures to significantly reduce the carbon footprint of the properties,” says Rüdiger Salzmann, Managing Director of Westbridge.

Smart metering represents a central element in the digitalisation of German meter infrastructure, with the aim of intelligent measuring devices (smart meters) replacing existing meters in all German households by the year 2032. Some 1.9 million end users will be affected by the mandatory replacement of the mechanical meters.

„Our aim is to manage our real estate portfolios in the most resource and energy efficient manner possible. We ensure the strict adherence to design options that optimise environmental impact as well as always taking social components into account.”

Söhnke Erichsen, Head of Corporate Management and Head of ESG
Warburg HIH Invest

“We see the comprehensive optimisation of our properties’ energy consumption and the collection of exhaustive building data as an important step towards the successful implementation of our ESG strategy.”

Alexander Eggert, Managing Director
Warburg HIH Invest

“Following a portfolio analysis, we were able to collect all relevant data on energy supply and uncover potential savings. Our job now is to implement tailor-made measures to significantly reduce the carbon footprint of the properties.”

Rüdiger Salzmann, Managing Director
Warburg HIH Invest



Institutional investors expect higher long-term returns due to ESG criteria

Institutional investors expect higher long-term returns due to ESG criteria

  • Warburg-HIH Invest has surveyed approximately 100 institutional investors on the topic of sustainability.
  • Many institutional investors are still implementing ESG criteria
  • Increased demand for advice among investors, particularly on ESG reporting

Hamburg, 2. July 2020 – The majority of institutional investors (51 percent) expect higher long-term returns on real estate if ESG criteria are taken into account when making investment decisions. That is the key finding of a survey of approximately 100 respondents conducted by Warburg-HIH Invest Real Estate (Warburg-HIH Invest). Of those surveyed, 11 percent said they would even accept a 0.2 percentage point lower return to meet ESG criteria. Approximately 70 percent said ESG criteria were relevant to their investment decisions or that they wanted to introduce them soon. However, the majority of institutional investors are still implementing such criteria. Around 55 percent plan to introduce them in the medium term, while just 13 percent do not plan to implement any sustainability criteria.

“Institutional investors are intensively engaged with the question of ESG. The survey confirms our impressions from numerous discussions with our customers. Most investors are very open to the topic. They are looking for partners who are implementing long-term ESG criteria in their investment strategies and who can offer them professional advice. That is confirmed by the finding that the majority of survey participants expect higher returns due to ESG criteria,” says Alexander Eggert, Managing Director of Warburg-HIH Invest.

Slightly less than 20 percent of those surveyed are currently using internally defined ESG criteria in investment decisions. A further quarter are currently developing such criteria. Approximately 55 percent of the respondents use external ratings to assess the sustainability of investments.

Reporting on sustainability criteria is closely associated with the use of ESG criteria when making investment decisions. Approximately 40 percent of investors already publish a sustainability report or include one in their annual report. Around 20 percent are planning to introduce a sustainability report. Of those surveyed, 34 percent do not publish a report and are not planning to do so in the medium term.

Increased demand for advice on the part of institutional investors Slightly less than 70 percent of respondents want advice on the topic of ESG. Institutional investors said that they primarily require external support when reporting on ESG criteria (25 percent) and measuring the sustainability of portfolios/funds (23 percent). The demand for advice will continue to grow due to a greater density of regulations, including the European Union’s planned Taxonomy Regulation. Approximately 53 percent of participants are using the available information to prepare for the Taxonomy Regulation, while slightly less than a third are waiting for the legislative process to be completed.

“This survey has given us a good overall picture of the current situation in terms of the implementation of sustainability criteria. We believe there will continue to be considerable demand for advice in this area for as long as there are no uniform standards or new national regulations,” says Alexander Eggert.

A total of 101 institutional investors participated in the survey. Of the participants, 25 percent manage real estate assets in excess of a billion euros.

“Institutional investors are intensively engaged with the question of ESG. The survey confirms our impressions from numerous discussions with our customers. Most investors are very open to the topic. They are looking for partners who are implementing long-term ESG criteria in their investment strategies and who can offer them professional advice. That is confirmed by the finding that the majority of survey participants expect higher returns due to ESG criteria.” “This survey has given us a good overall picture of the current situation in terms of the implementation of sustainability criteria. We believe there will continue to be considerable demand for advice in this area for as long as there are no uniform standards or new national regulations.”

Alexander Eggert, Managing Director
Warburg HIH Invest



Warburg-HIH Invest Acquires Mixed Office/Commercial Building in Aachen for New Open-Ended Special AIF

Warburg-HIH Invest Acquires Mixed Office/Commercial Building in Aachen for New Open-Ended Special AIF

  • New-build office and commercial building of over 5,000 square metres of lettable area in Aachen, fully let
  • First asset for Warburg-HIH’s “Deutschland Selektiv Immobilien Invest II” investment fund
  • Property development aims for DGNB Gold sustainability certificate
  • Sold by property developer Landmarken AG

Hamburg, 8. June 2020 – Warburg-HIH Invest Real Estate GmbH (“Warburg HIH Invest”) acquired the new-build office and retail complex Pick-up at Quartier Nord in Aachen. The six-storey building was acquired within the framework of an asset deal on behalf of the “Deutschland Selektiv Immobilien Invest II” open-ended special property fund. The fund invests in “core / core plus” office properties in selected German growth cities. An add-on option permits investments into other types of use up to a limit of 30 percent of the total assets. Assuming a minimum fund volume of 400 million euros and a gearing ratio of no more than 50 percent on the fund level, the distribution yield is expected to equal four percent. Institutional investors can buy into the fund by acquiring equity interests of five million euros or more.

The property development at Krefelder Strasse 128 in Aachen provides more than 5,000 square metres of office and restaurant space along with 73 parking spots. The property was built by Landmarken AG and completed on schedule. The multi-tenant property is already fully let. Main tenant with an occupied share of 73 percent of the gross lettable area is COGNEX, a globally operating specialist for machine vision readers, on a long-term lease for more than ten years. The restaurant unit is let to Burger King for a 20-year term. Other tenant in the building include a physical therapy centre, also on a lease term of more than ten years. It was agreed not to disclose the selling price.

“With the ‘Deutschland Selektiv Immobilien Invest II’ investment fund, we pick up where we left off with its fully-placed precursor fund. We managed to achieve an excellent performance on behalf of our investors with our fund concept and consider the investment strategy to be just as auspicious going forward. Accordingly, we decided to launch another fund of the same type but without a maturity cap,” said Alexander Eggert, Managing Director of Warburg-HIH Invest. “With the acquisition of the Pick-up, we are adding a property occupied by high-net-worth tenants on long-term leases to the fund.”

It is intended to secure a DGNB Gold certification for the building. The Pick-up scheme was created as part of the Quartier Nord locality the Landmarken is developing between the inner city of Aachen and the A4 motorway. The town centre is eight minutes and the A4 motorway four minutes away by car. Direct access to the B57 federal route further enhances the excellent transport connectivity. By 2030, the Quartier Nord development will have created a total of 48,500 square metres in mixed-use properties for the use types office, retail and gastronomy, along with parking facilities. Other companies that have moved to Quartier Nord include Tranel, St. Gobain, ADAC and Telekom.

The legal and tax due diligences for the buyer side were conducted by Ashurst LLP in Frankfurt am Main. The technical due diligence was done by Schwab (SCHWAB.engineers Projektmanagement GmbH) based in Hamburg.

[blockquote] [quote zitat="“With the ‘Deutschland Selektiv Immobilien Invest II’ investment fund, we pick up where we left off with its fully-placed precursor fund. We managed to achieve an excellent performance on behalf of our investors with our fund concept and consider the investment strategy to be just as auspicious going forward. Accordingly, we decided to launch another fund of the same type but without a maturity cap. With the acquisition of the Pick-up, we are adding a property occupied by high-net-worth tenants on long-term leases to the fund.”" author="Alexander Eggert, Managing Director
Warburg-HIH Invest"] [/blockquote]