HIH Invest Real Estate (HIH Invest) has acquired a residential project in Wuppertal for the special fund “Deutschland Wohnen Invest” from TEAMRHEINRUHR Projektentwicklung GmbH. The property with 5,025 square meters of living space is located on Münzstrasse. 60 residential units in the KfW standard “Efficiency House 40 EE” are planned on five full floors, supplemented by a listed signal box residential building in the Monument EE standard and 50 garage parking spaces with e-charging options. Planning permission is expected by the end of July 2022 and completion is scheduled for mid-2024. The project is part of a new city district on the Sedansberg, where a mix of apartment buildings, townhouses and terraced houses is being built. “We are investing in Wuppertal in a market-oriented, energy-efficient mix of apartments with a focus on two- and three-room apartments and a high standard of construction,” explains Nadine Robra, Team Leader Transaction Management Germany, about the purchase.
“With the low level of new construction activity in Wuppertal, there is still an attractive investment opportunity for the fund due to the high demand for high-quality apartments, especially from families. In addition to the very good quality of the property, the stable cash flow, the pressure of demand, the good location and the infrastructure speak for the investment,” says Tom Kircher, Fund Manager at HIH Invest.
The downtown location with walking distance to the city center of Wuppertal-Barmen offers all facilities of daily needs in the vicinity. “The property is in an attractive micro-location on the Sedansberg and offers a beautiful view over the city of Wuppertal. The many central playgrounds and the location on the cycle route make the living environment extremely family-friendly,” says Ansgar Pape, member of the housing investment committee of HIH Invest.
Due to the large number of nearby bus stops, the quarter is also excellently connected to the public transport network. Various regional trains, an S-Bahn connection and the nearby A1 and A46 motorways also offer fast connections to the surrounding metropolitan areas. Düsseldorf Airport can be reached in 35 minutes by car. The adjacent Nordbahntrasse cycle route was awarded the German Bicycle Prize in 2015. It connects the urban area and offers a high recreational value.
The purchase in Wuppertal is the sixth investment by “Deutschland Wohnen Invest” and was made via an asset deal. This increases the total investment volume of the open Article 8 fund to over 155 million euros with an equity share of around 85 million euros. The aim is to achieve an average annual return of 3.40 to 3.50 percent on the investment fund. Further acquisitions that meet the fund’s high criteria in terms of ecological and social sustainability are planned. The target volume of the fund is over 400 million euros.
The legal and tax due diligence was carried out by Heussen Rechtsanwaltsgesellschaft mbh. Case Real Estate GmbH is responsible for the technical purchase examination. The environmental due diligence was carried out by Arcadis Germany GmbH. On the buyer side, iib Institut Innovatives Bauen Consult GmbH also acted in an advisory capacity at the location. The transaction was brokered by Imovo GmbH from Düsseldorf.
