HIH Invest Real Estate (“HIH Invest”) acquired another day nursery (daycare centre), this one located in Leipzig, for its “HIH Zukunft Invest” open-ended institutional fund. The two-storey property at Clara-Wieck-Strasse 9 provides 1,638 square metres of lettable area to accommodate 165 children, thereof 28 in the crèche section and 117 in the preschool section. In addition, after-school care places for school children of up to ten years of age are available in the afternoon. The outdoor area covers about 1,800 square metres on a plot of 3,134 square metres.
The day nursery at Clara-Wieck-Strasse 9 is located directly next to another day nursery, located at Stöckelstrasse 37-41. The latter belongs to the portfolio of the “HIH Zukunft Invest” fund as well. The association sponsoring both facilities is the Johanniter-Unfall-Hilfe e.V., the national charity of the Order of St John in Germany. The lease agreement of the property just acquired will run for a remaining term of well over 15 years.
“The acquisition gives us the chance to invest in a day nursery that, while well-established, is still rather new, and that exploits synergy effects as it collaborates with the day nursery on Stöckelstrasse,” commented Jens Nagelsmeier, Head of Transaction Management Retail & Healthcare at HIH Invest. “Both facilities are located in a densely populated residential area in the Schönefeld-Abtnaundorf district in one of the fastest-growing cities of Germany. Leipzig’s brisk demographic growth is expected to continue through 2035. As a consequence, day-care spots for children are very much in demand.”
The Article-8-fund “HIH Zukunft Invest” is still in its investment phase. The fund focuses on educational facilities like day nurseries, schools and academic buildings in fast-growth cities and metro regions in Germany. The fund has a targeted volume of at least 100 million euros, and may use up to 50 percent leverage on the portfolio level.
The legal and tax due diligences for this transaction were handled by the law firm of Heuking Kühn Luer Wojtek in Hamburg. Consulting Partners Hamburg (CPH) was responsible for the technical due diligence.
