Walter Herz Report: Trends transforming the office market in Poland

Global economic transformations are impacting how companies operate and how workplaces are designed. The report titled “25 Trends That Will Transform Your Office by 2025,” developed by Walter Herz in collaboration with experts from Workplace, ISS Polska, DECISIVE Szmigiel, Papros, Gregorczyk, and Brill AV Media, outlines the leading trends shaping the development of the office market in Poland.

-The analysis highlights the main factors driving change in the office sector. The information in the report may serve as inspiration for creating efficient and cost-effective office spaces that address the new work system. It also includes information on innovations in space design and management, as well as technological solutions entering offices, and new provisions being introduced into lease agreements – says Mateusz Strzelecki, Partner/Head of Tenant Representation at Walter Herz.

The Office Market

Jarosław Zdzitowiecki, head of Walter Herz’s Tri-City branch, describes the main trends shaping today’s office market. – The widespread adoption of hybrid work is driving the trend of tenants choosing smaller spaces and companies focusing on buildings that offer high quality, located in attractive surroundings in city centers. Comfortable offices equipped with modern technical solutions and offering a friendly environment are gaining in importance – admits Jarosław Zdzitowiecki.

Offices are becoming spaces for meetings, building relationships, team spirit, and company culture, designed to promote team integration.

A characteristic feature of the office market is the low supply of new space. It’s increasingly difficult to find a good address that attracts employees, and the number of new developments is limited. Demand for prime space in city centers exceeds supply.

One challenge for market participants is the rising cost of fit-outs and service charges. There’s a growing trend to reduce costs associated with the finishing and fit-out of new offices. Moreover, renegotiations are playing an increasing role in the leasing structure.

Tenants are also looking for ways to control operating costs, while space optimization is leading to a rise in sublease offerings.

Design

Office design and the functional profile of workplaces are also changing significantly. Bogusz Parzyszek, CEO and founder of Workplace, defines the main trends in this area. – The leading trend in office design is related to the need to build company culture and consciously shape the social and organizational aspects of the work environment. The designed space should effectively foster community, integration, and collaboration – says Bogusz Parzyszek.

Experimentation is becoming the foundation of design processes. One direction involves implementing neuroscience guidelines to support mental and physical regeneration through design and amenities.

A change in narrative is guiding designers. Workspaces are being tailored to the needs of people who regularly use the office, moving away from attempts to attract all employees back.

– Technologies based on data analytics and computational models are being used to optimize office spaces and improve their operational efficiency. Smart workplace management, such as using reservation systems to monitor real usage, reduces resource waste – says Bogusz Parzyszek.

Productive innovation is a trend based on the belief that the designed space should help achieve a state of mind referred to as productively-innovative.

Fit-out and build

Alicja Muszalska, an architect in the Capital Projects team at ISS, outlines the hallmarks of modern fit-outs in the report. #Durabilityinvolves designing spaces using high-quality, durable materials and recycled elements.

#Moderation refers to creating spaces that are cost-efficient and environmentally friendly, which includes material recycling, reducing utility consumption, and implementing BMS and IOT systems. This also aligns with designing mixed-use, boutique offices equipped with top AV equipment.

#Utility governs issues such as diversity and inclusivity, designing spaces that foster social bonds across diverse groups and entire teams.

#Paradox management seeks a balance between social and environmental aspects, minimizing conflicts of interest.

Technology

Technology is crucial in office planning. Cezary Gromko, AV Integrations Account Manager at Brill AV Media, describes the latest solutions being implemented in offices. In his view, one of the fastest-growing trends in office space design is the integration of podcast studios. – Companies are recognizing the enormous benefits of incorporating solutions beyond traditional AV technology. Podcast studios significantly enhance internal communication within organizations while also serving as an attractive employee benefit. Externally streamed podcasts can also be part of a company’s content marketing strategy. – says Cezary Gromko.

Another solution being introduced into offices is interactive monitors, which allow teams to visualize ideas and boost creativity in project work. USB-C technology enables the connection of office laptops, monitors, power, and peripheral accessories through a single cable, creating a “clean desk” environment.

The development of LED technology and device miniaturization has made modern AV solutions more discreet and aesthetically pleasing. Innovative workplaces are also utilizing interactive spaces in leisure zones, where employees can engage in various creative forms of entertainment and education.

Legal Provisions in Lease Agreements

Andrzej Szmigiel, Partner at DECISIVE Szmigiel, Papros, Gregorczyk, discusses new provisions in lease agreements. – A new addition to lease agreements are clauses concerning Service Level Agreements, which ensure the quality of services provided by landlords. Lease agreements are increasingly including clauses that require landlords to hold appropriate certifications for buildings, implement energy-efficient solutions, and use green energy. – says Andrzej Szmigiel.

More and more tenants are seeking to introduce clauses allowing them to negotiate individual energy supply contracts and ensure technical capabilities for energy independence. There is also growing attention to precisely defining and accounting for force majeure issues. New contract provisions also address sanctions imposed by the U.S. and the European Union in response to actions by authoritarian regimes, affecting certain entities.

Author: Walter Herz
Photo(s): Walter Herz

Newport Logistics Fund launches third pan-European logistics fund, Targeting €300 Million

Newport Logistics Fund has announced the launch of its third pan-European logistics fund, aiming to raise €300 million to develop 10-12 modern logistics facilities across Europe. This follows the successful fundraising and investments of its first two funds, which collectively secured projects valued at €300 million in gross asset value (GAV).

Newport Logistics Fund I S.C.A. SICAV-RAIF, launched in 2022, raised funds within 10 months, enabling investments in state-of-the-art logistics facilities in London, Amsterdam, and Lodz, valued at €100 million GAV. Building on that success, Newport Logistics Fund II S.C.A. SICAV-RAIF was introduced in March 2023 and has since raised €200 million, which has been allocated to projects in Austria, the Netherlands, France, Poland, and Germany.

Newport Logistics Fund, established in 2022 and part of the Panattoni Group, focuses on financing the full investment cycle for logistics warehouses in key European locations. The fund’s success is attributed to its strategy of geographic diversification and collaboration with Panattoni, a leading warehouse developer, providing investors with access to logistics projects across Europe. The funds have attracted a wide range of investors, including high-net-worth individuals and family businesses from the EU, Switzerland, the UK, the US, and the Middle East.

Szymon Ostrowski, Managing Director of the fund, noted, “Investors have appreciated the strategic diversification of assets in key logistics locations and the ability to deliver above-average returns, even in challenging economic conditions.”

Following the positive reception of Funds I and II, Newport Logistics Fund III S.C.A SICAV-RAIF aims to expand the fund’s portfolio further, with secured projects already underway north of London in the UK and a build-to-suit (BTS) facility in Malaga, Spain. Additional investments across the European Union are currently being evaluated.

All Newport Logistics Fund projects adhere to strict sustainability standards and are BREEAM certified, aligning with ESG objectives under Article 8 of the EU SFDR. “We aim to achieve a 15% annual return for our investors while also delivering environmentally responsible projects that meet the needs of both tenants and warehouse owners,” said Ostrowski.

With the launch of Fund III, Newport Logistics Fund continues to strengthen its position as a key player in Europe’s rapidly growing logistics sector, developing sustainable and high-quality facilities in strategic locations across the continent.

JTRE lays cornerstone for Nordhafen Living & Office in Berlin’s Europacity

In a symbolic ceremony, JTRE and JTRE Germany marked a major milestone in the construction of their first German project, Nordhafen Living & Office, with the laying of a ceremonial cornerstone and time capsule. The event, attended by architects, contractors, and the media, celebrates the start of a 33,000 sqm multifunctional development in the heart of Berlin’s Europacity district.

The project, scheduled for completion in 2027, will feature 150 long-term rental residences, alongside office spaces, retail outlets, dining establishments, and additional services. Nordhafen Living & Office embodies the 15-minute city concept, designed by internationally acclaimed gmp studio Architekten, aiming to deliver a vibrant mixed-use environment in one of Berlin’s emerging neighborhoods.

The ceremony saw JTRE’s leadership in attendance, including Peter Píš (Commercial Director), Lukáš Sásik (Director of International Projects and Managing Director of JTRE Germany), and the project’s managers, Sebastian Mirrek and Jesper van der Heiden. Chief architect Hans Joachim Paap of gmp studio was also present. A time capsule filled with contemporary newspapers, project documents, and well wishes was buried, symbolizing the project’s significance.

“This project aligns perfectly with JTRE’s strategy to develop integrated urban districts in desirable waterfront locations,” said Pavel Pelikán, a key representative of JTRE. “We’re confident that Nordhafen Living & Office will be as successful and impactful as our award-winning developments in London, Triptych Bankside and Appleby Blue. This project will leave a lasting impression in Berlin’s Europacity.”

Lukáš Sásik expressed excitement about bringing this project to one of Berlin’s newest districts, noting the increase in the number of rental apartments and the rebranding as Nordhafen Living & Office. “We strive to create projects that combine outstanding architecture with benefits for residents and tenants alike,” he said.

Construction progress has accelerated since February 2024, following a pause since 2022. Rough construction began in September, and the reinforced concrete frame is expected to be completed by 2026, with full project completion slated for March 2027.

Nordhafen Living & Office is designed to provide an ideal space for living and working in the dynamic Europacity. The project will include a green courtyard with a rest area and playground, more than 300 bicycle parking spaces, underground parking with e-charging stations, and a roof terrace for office tenants. The building will also feature solar panels and has already received LEED Platinum pre-certification. The developers are aiming for additional certifications, including WELL, WiredScore, and SmartScore.

Located in the rapidly developing Europacity district, the project will integrate a mix of residential, office, retail, and dining options, fostering a vibrant community atmosphere typical of Berlin’s Kiez neighborhoods. Its proximity to iconic landmarks such as the Brandenburg Gate, Tiergarten park, and Museum Island further enhances its appeal.

Nordhafen Living & Office represents JTRE’s commitment to creating forward-thinking urban developments, blending innovation with Berlin’s historic charm.

DEJONG selects CTPark Prešov North for new 33,000 sqm facility in Slovakia

DEJONG, a manufacturer of stainless-steel hot water tanks, has signed a long-term lease for 33,000 sqm of warehouse and office space at CTPark Prešov North in Slovakia. This marks the first tenant for the park, which spans 43.5 hectares and offers a gross lettable area (GLA) of 200,000 sqm. DEJONG, a subsidiary of Rheem Global Water, will utilize the facility as a strategic base to meet growing European demand.

The new facility, consisting of 29,800 sqm of warehouse space and 3,200 sqm of office space, is expected to be completed by early 2026. The development is projected to create hundreds of jobs and strengthen the local supply chain. DEJONG’s decision to invest in Eastern Slovakia was driven by the region’s skilled workforce, developed infrastructure, and governmental support.

Lee Fletcher, DEJONG Slovakia’s Plant Manager, highlighted the region’s advantages, stating, “Eastern Slovakia offers a skilled, multilingual workforce and well-developed transport infrastructure, making it an ideal location for our expansion.” Rheem Europe’s Managing Director, Arno La Haye, added, “This investment is crucial to our growth in Europe, allowing us to deliver sustainable heating solutions.”

Peter Ceresnik, COO of CTP Group, welcomed DEJONG, noting the company’s alignment with CTP’s long-term vision for sustainable growth in Central Eastern Europe (CEE). The strategic location of CTPark Prešov North positions it well for cross-border trade with Poland, just 70 km away, and adds to CTP’s extensive portfolio in Slovakia and the broader CEE region.

DEJONG’s new facility adds to the region’s industrial expansion, following major investments like Volvo Cars’ €1.2 billion plant in Košice and BMW Group’s solar plant in Hungary. CTP, Slovakia’s leading industrial property developer, continues to attract foreign investment to its parks, further boosting the region’s rapid economic growth.

EDF Invest and Generali Real Estate announce major co-investment in French logistics sector

EDF Invest, the investment arm of the EDF Group, and Generali Real Estate have unveiled a new co-investment program in the French logistics sector. As part of the agreement, EDF Invest has acquired a 50% stake in the investment vehicle OPPCI Parcolog Invest from Generali France, with the remaining 50% held by the Generali Group through its pan-European logistics strategy, the Generali Real Estate Logistic Fund (GRELF).

OPPCI Parcolog Invest currently owns a portfolio of nine high-quality logistics assets in France valued at approximately €400 million. These assets include strategic locations such as Moussy le Neuf near Roissy, XXL platforms in Hénin Beaumont (Lille) and Plaine de l’Ain (Lyon), and other properties in Marseille Clésud, Avignon, Bourg en Bresse, Le Mans, and the Lille region. The co-investors aim to further expand the portfolio with new acquisitions and logistics developments over the coming years.

Generali Real Estate views OPPCI Parcolog Invest as its key vehicle for logistics investments in France, while continuing its broader expansion across continental Europe through the GRELF fund. This collaboration with EDF Invest is expected to enhance the growth of Generali’s logistics portfolio by leveraging third-party capital.

“This partnership with EDF Invest, which began two years ago in the office sector, now extends to logistics, a critical asset class for Generali Real Estate. We are honored by the trust of our partners and are committed to delivering investment solutions that align with their objectives,” said Sébastien Pezet, Head of Western Europe at Generali Real Estate.

Pierre-David Baylac, Head of Logistics at Generali Real Estate, expressed optimism about the partnership’s potential. “This co-investment with EDF Invest allows us to strengthen our position in France at a pivotal moment for the logistics market. We are excited about the future growth opportunities through OPPCI Parcolog Invest and the GRELF fund.”

Clémence Caniaux, Head of Real Estate at EDF Invest, highlighted the strategic alignment of the acquisition. “This investment enhances our portfolio’s exposure to the logistics sector and reflects our long-term strategy. We look forward to deepening our partnership with Generali through this high-quality portfolio.”

The transaction has been financed by a consortium of leading banks, including CACIB, BNPP, and Société Générale. Generali Real Estate will oversee asset management, while property management will be handled by Parcolog Gestion/Primelog.

Savills Poland appoints Paulina Stach as Director of Retail Property & Asset Management

Savills, a global real estate advisory firm, has announced the appointment of Paulina Stach as Director of Retail Property and Asset Management. Stach brings 15 years of operational expertise in property management, particularly in creating development strategies for shopping centers.

Before joining Savills, Stach held senior management roles in both the transport and real estate sectors, overseeing prominent projects in Poland and internationally. Her portfolio includes managing well-known shopping centers such as Westfield Arkadia, Galeria Krakowska, Galeria Łódzka, Limbecker Platz Essen, Schloss Höfe Oldenburg, and Thier-Galerie Dortmund. She also led the management of Pasaż Grunwaldzki in Wrocław for five years and served as Consulting Director at Comarch and Director of the Retail Department at G City Europe.

“Paulina has an impressive track record in managing high-profile retail properties. Her experience and skillset will undoubtedly elevate the quality of our Property and Asset Management department, helping us achieve our strategic objectives and enhance team collaboration,” said Michał Bryszewski, Head of Property & Asset Management at Savills.

Stach holds a degree in Economics and International Relations from the Cracow University of Economics, and she completed a Double Degree Programme at Kiel University of Applied Sciences in Germany, along with a scholarship at the University of Victoria in Canada. She also pursued postgraduate studies in Financial Management at Poznań University of Economics.

Outside of her professional achievements, Stach is passionate about travel. In 2017, she solo-traveled across eight South American countries, and in 2023, she embarked on a journey through Oceania, visiting countries from Australia to New Zealand and the Kingdom of Tonga.

Poland: Survey reveals prices and availability of studio flats in new housing developments

A survey offering detailed insights into the pricing of the smallest flats from developers, including studio apartments in new housing developments and the specific projects where they are currently available.

Tomasz Kaleta, managing director of sales and marketing at Develia:
The prices of studios in our offer depend, among other things, on the location of the development. They start at PLN 340,000 for units of around 26 sq.m. in the Unii Lubelskiej Vita investment in Poznań.

In Warsaw and Krakow, on the other hand, the cost of purchasing this type of apartment is an expense of nearly PLN 500 thousand. This is due to the fact that we have abandoned the design of small flats, the area of which, according to the regulations in force, can be from 25 sq m, in favour of slightly larger, compact units of about 32 sq m with the possibility of separating a bedroom. This allows our customers to choose a spacious studio or compact duplex, which is cheaper than a standard two-room flat.

Agnieszka Majkusiak, sales director at Atal:
In the Ogrody Andersa project in Gliwice, we have one-room flats with an area of 26 sqm on sale at a price of over PLN 284,000. In the Łódź project Atal Aura, a 26-square-metre flat can be bought for over PLN 300 thousand. In Wrocław, in the Atal Starachowicka estate, a flat of 25 sq.m. awaits buyers for around PLN 336 thousand.

The Przyjemne estate in Gdańsk offers 27 sq m studio flats for PLN 362 thousand. In the Atal Olimpijska investment in Katowice, a flat of approximately 26 sqm is on sale for PLN 382 thousand. In Kraków, in the Przewóz 42 project, you can buy a single 26 sq m for over PLN 452 thousand. In Atal’s Heyki City project in Szczecin, we have one-room flats of more than 28 sq m for PLN 454 thousand.

Małgorzata Ostrowska, Director of the Marketing and Sales Division at J.W. Construction:
In Osiedle Kościuszki in Chorzów, we offer a flat with an area of 27 sq m for PLN 354 thousand. In the Apartamenty na Wzgórzach project in Zawada near Myślenice, we have a studio of 25 sqm on sale for PLN 298 thousand. In the Nad Odrą project in Szczecin, a unit of 29 sq.m. can be purchased for over PLN 426 thousand. In the Horizon estate in Gdańsk, a one-room flat of 29 sq m is on offer for PLN 541 thousand.

Michał Witkowski, sales director at Lokum Deweloper:
One-room flats and small two-room flats are eagerly purchased by customers looking for a place to start. Due to the popularity of this type of space, their availability is steadily decreasing, but our Wrocław offer still includes compact units designed to make the most of every square metre.

At the Lokum Porto estate, located in Wrocław’s Old Town, in a location characterised by high investment potential, the smallest units of approximately 32 sq m are offered from PLN 554,000. Compact flats with an area of approximately 33 sqm, priced from PLN 499,000, are offered at the Lokum la Vida housing estate located in ul Herbsta in Wrocław, surrounded by extensive urban infrastructure and recreational areas.

Marek Starzyński, Sales Director, Okam Capital:
One-room flats are desired by young customers as well as individual investors buying premises for rent. In our current projects, among the cheaper one-room flats available, we have, for example, in Strefa Progress in Łódź, a flat of just over 34 sq m at a promotional price of PLN 11,374 per sq m. In the NOW project in Łódź, the price of a 33 sq m flat with a garden is PLN 10,868 per sq m with a discount.

In the Cityflow project in Warsaw, a 32-sq.m unit also with a garden can be purchased for PLN 21,650 per sq.m., and in the Inspire project in Katowice, a one-room flat with an area of 29 sq.m. is available at a price of PLN 14,400 per sq.m.

Agnieszka Gajdzik – Wilgos, Sales Manager, Ronson Development:
In Warsaw’s Ursus Centralny estate, prices of studio flats range between PLN 445,000 and PLN 563,000. These are flats with an area of 25-33 sqm.

On the other hand, in the City of My City development in Warsaw, a 25-square-metre flat can be bought for PLN 420,000. In Poznań, in the Grunwald Między Drzewami investment, the cheapest one-room flat costs PLN 350,000, plus one with its own garden. In Szczecin, prices of one-room flats start at 300,000 PLN.

Agata Zambrzycka, sales and marketing director at Aurec Home:
In 2023, two-room flats were the most popular, but now we are also seeing an increasing number of enquiries for the smallest size. The popularity of studios is due to their compact form. They are suitable for singles, students, couples and the elderly. In addition, they are still cheaper than larger flats. We offer studios in all our investments. Particularly worth mentioning is the newly developed investment Fabrica Ursus, which in a modern way refers to the industrial past of the former Ursus factories, where buyers can choose from flats with areas from 36 sqm.

The prices of studios vary and depend on a number of factors, such as the metric area and floor. We have a range of different budget options for potential owners. Thanks to our own sources of financing, we can offer purchasers selected units of a high standard at prices starting from 13,000 per sqm.

Damian Tomasik, CEO of Alter Investment:
From the position of a land developer, we notice the growing interest of developers in projects involving studio flats. The implementation of such projects often depends on the location of the property and planning requirements. A common example we encounter is the required large number of parking spaces, which forces the design of larger units, which certainly does not facilitate the optimisation of the flat structure. In well-located properties with access to public transport, residents of studio flats rarely use cars, while regulations require the provision of 1.2 or even 1.5 parking spaces per such flat. Customers buying studio flats are usually not interested in parking spaces and developers are forced to build them, which significantly increases the investment costs. It is therefore worth noting the need to adapt local development plans, which were often passed 15-20 years ago when other trends prevailed.

Source: dompress.pl
Photo: Wroclaw, Traugutta Vita, Develia

Deutsche Wohnen SE sells care portfolio for over €300 million

Deutsche Wohnen SE has finalized the sale of its Katharinenhof Group care portfolio, comprising 26 care properties, for a purchase price exceeding €300 million. The transaction was facilitated by Cushman & Wakefield, a global leader in property consultancy. The buyer is a fund managed by Civitas Investment Management (CIM), with TSC Real Estate advising Civitas on the acquisition.

The portfolio features over 3,000 beds across its care homes, which are primarily fully inpatient facilities with some assisted living units. This sale marks a significant move in the healthcare property market, reflecting growing investor interest in this asset class.

Cushman & Wakefield played a crucial role, acting as the commercial real estate advisor to Deutsche Wohnen SE. The firm also handled the technical due diligence required for the sale.

Commenting on the transaction, Jan-Bastian Knod, Head of Residential Investment Germany & Head of Healthcare Advisory at Cushman & Wakefield, stated, “The healthcare property asset class is returning to the spotlight for institutional investors. Following a period of high inflation, the operating results of care home operators have stabilized, making them more profitable. The long-term demand, stable market, and attractive returns are driving both national and international investors to explore opportunities in nursing, rehab, and medical care properties.”

Looking ahead, Cushman & Wakefield expects an increase in transaction volume within the healthcare real estate market throughout 2024, continuing the upward trend from 2023.

This sale highlights the sector’s strong potential as investors seek stable, long-term opportunities in a rapidly evolving property cycle.

Art-Invest Real Estate acquires four-property B&B hotel portfolio in Germany

Art-Invest Real Estate has announced the acquisition of a portfolio of four B&B hotels from Covivio, further strengthening its budget hotel fund. The newly acquired properties are located in key German cities: Berlin, Cologne-Frechen, Oberhausen, and Koblenz. Together, they offer a total of 400 rooms, all under long-term lease agreements.

Situated in highly accessible and visible micro-locations, these hotels benefit from strong demand across both business and leisure sectors.

Dr. Peter Ebertz, Managing Director of Art-Invest Real Estate, commented on the transaction: “This acquisition allows us to enhance our core budget hotel fund with four well-performing B&B hotels. Even amid the current market conditions, we continue to find attractive investment opportunities, which have contributed to the fund’s solid performance. With a narrowing gap between seller and buyer price expectations, we foresee an upswing in the hotel investment market.”

Art-Invest Real Estate received legal counsel from GSK Stockmann, while technical advice was provided by Reese Baumanagement, Witte Projektmanagement, and Albers-Parken Consulting. Commercial consulting was handled by Hotour Hotel Consulting, with JLL Hotels & Hospitality acting as the broker for the deal.

This acquisition reflects Art-Invest Real Estate’s strategic focus on expanding its presence in Germany’s budget hotel market, reinforcing its position as a key player in the sector.

HIH Invest launches institutional fund, acquires 14 properties in major investment move

HIH Invest Real Estate GmbH (“HIH Invest”) has announced the launch of a new institutional fund focused on residential real estate, securing a significant portfolio of 14 properties in collaboration with German housing giant, Vonovia. The fund’s total investment volume exceeds €630 million, encompassing nearly 1,600 high-end residential units and over 14,000 square meters of commercial space.

The fund is capitalized by a consortium of institutional investors, with HIH Invest holding a majority stake. Vonovia will manage the properties, while HIH Invest takes on the role of asset and fund manager.

The fund’s acquisitions include 14 newly built developments, 11 of which were sold by Vonovia, with the remaining three from Quarterback Immobilien AG. The properties cover a total lettable area of more than 127,000 square meters, of which 113,500 square meters are residential. The portfolio features a variety of housing options, including 1,592 apartments, student residences, and age-appropriate housing units. The developments are strategically located across key cities, including Berlin, Hamburg, Leipzig, Dresden, and Offenbach.

“These sites offer prime locations in well-established urban districts with strong public transport links, close to shopping centers, schools, and healthcare facilities. The buildings boast high-end finishes, including parquet flooring, underfloor heating, and large windows, and meet rigorous energy efficiency standards such as KfW 55, KfW 55 EE, and EnEV. Several properties are also targeting DGNB Gold certification for sustainability,” said Felix Meyen, Managing Director of HIH Invest.

The new fund allows HIH Invest to broaden its portfolio in a challenging market, with residential real estate emerging as a stable and growing asset class. “The German rental property market continues to offer resilient investment opportunities with strong cash flow potential,” noted Alexander Eggert, Managing Director of HIH Invest. “This fund strengthens our position in the market by delivering a product that aligns with current demand, particularly in the energy-efficient housing sector.”

The fund will also adhere to Article 8 of the EU Sustainable Finance Disclosure Regulation, ensuring compliance with stringent environmental standards. Vonovia will guarantee initial rental occupancy for both residential and commercial units.

Carsten Demmler, Managing Director at HIH Invest, highlighted the appeal for investors: “We are delighted to offer this excellent investment opportunity, with a strong risk-return profile, to our institutional investors. Our partnership with Vonovia, Germany’s largest housing company, further underscores the strength of this initiative and represents the first step in a larger collaboration.”

Legal and tax advice for the transaction was provided by Ashurst, while Drees & Sommer conducted technical and ESG audits. Commercial due diligence was managed by BNP Paribas Real Estate Consult.

This major acquisition is set to bolster HIH Invest’s position in the residential real estate market, offering a solid foundation for future growth amid rising demand for sustainable, energy-efficient living spaces.

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