HIH Invest Creates New Business Unit, Value-Add Investments

HIH Invest set up a new business unit that specialises in value-add investments. The new strategy is a response to growing demand in this segment from international investors, particularly for logistics and residential opportunities. Accordingly, HIH Invest will concentrate on these types of uses. Perspectively, there are plans to expand into other asset classes, especially office.

Having so far focused primarily on low-risk core and core-plus acquisition profiles, HIH Invest will also intensify its pursuit of more risk-averse investment strategies as market-driven opportunities emerge. 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. To its existing investors, HIH Invest can now offer an additional segment with its value-added business unit.

For individual investments, HIH Invest adopts primarily the role of operating- or joint venture partner. The company serves as an investment and asset manager with boots on the ground, well-networked in the market, and with the necessary know-how to execute the business plans. The newly 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.

Felix Meyen, Managing Director at HIH Invest, commented: “Taking full advantage of the experience from prior and ongoing repositioning projects, we understand the needs and requirements that occupiers have regarding rental property. At the same time, we can respond to emerging trends and shifting parameters to realise value appreciation. 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 certain development cases. Thanks to our wide network and our high asset management competence, we are bringing the ideal set-up for implementing the value-add strategy to the job.”

The head of the new business unit will be Lars Bothe (32). He joins from Mirastar Real Estate Investment Management where he worked as Principal for two years, being mainly responsible for the company’s expansion into Germany. Mirastar, KKR Real Estate’s industrial and logistics platform in Europe, is a developer, investor and manager in the core-plus and value-add segment. Lars Bothe, who started his career with KPMG, worked at HIH Invest from 2015 through 2022, most recently as Head of Transaction Management Logistics.

Lars Bothe commented: “I am very excited and look forward to my new responsibilities as Head of Value-Add Investments at HIH Invest. In my new role, it will be my responsibility to identify, structure and execute value-based real estate projects in various asset classes. I’m convinced that the current market environment offers fascinating opportunities waiting to be seized via an active, sustainable and creative asset management approach.

A project revolving around LogPark in Leipzig marks the start of the new business unit, where HIH Invest and its joint venture partner Partners Group plan on refurbishing a former distribution centre. By adding two new assets with ca. 30.000 sqm, the asset will be formed into a high-end logistics space tailored to the demand structure of the regional logistics market.