HIH Invest Real Estate continues to expand into the residential sector, having just acquired a residential property development in the Ruhr. Over the next two years, a housing estate of 55 units will be developed on a footprint of around 4,550m² in Bochum, supplemented by a day nursery of four groups on about 690m². The new-build development consists of three building sections of four storeys each that are connected via a shared underground car park, as well as a separate building in the rear part of the plot that will house a day nursery. Construction work is scheduled to start during the second quarter of 2022. The complex will be constructed to the “KfW efficiency house 55” standard and therefore meet the strict requirements for any residential real estate added to the portfolio of the special AIF. Its seller and developer is the Ten Brinke Group based in the Netherlands.
The apartment mix breaks down into units of 2 to 5 bedrooms on footprints of 51 to 124m². All units will come with a balcony or patio plus a private garden section and are planned to be handicap-accessible and in some cases fully wheelchair-accessible. Around half of the units will be developed as subsidised housing for low- to middle-income households. The 27 sponsored units will have an average dwelling floor area of 83m², and will thus accommodate flexible and generous residential concepts suitable for broad-based groups of occupiers. Just like the privately financed apartments, the sponsored units will feature excellent specifications, including real-wood parquetry, modern bathroom fixtures and fitted kitchens as well as mainly floor-length vinyl-frame windows to admit plenty of daylight.
“The affordable flats we are about to supply will meet with keen interest. Although the building activities on the residential market in Bochum have picked up steam in recent years, the number of subsidised flats is rapidly declining,” said Nadine Robra, Team Leader Transaction Management Germany at HIH Invest.
“Via this new-build construction project, we are creating a well-diversified apartment mix that is particularly attractive for families because of a sound infrastructure, the directly annexed day nursery, and the location on the city’s outskirts, close to green areas,” added Tom Kircher, Fund Manager at HIH Invest. The site benefits from easy access by private and public transport.
Ansgar Pape, member of the Investment Committee Residential at Warburg-HIH Invest, said: “The residential development in Bochum is an excellent example for the way in which we as investment manager can contribute to social cohesion: Via our “Deutschland Wohnen Invest” fund, we are investing in family-friendly housing development projects that create the affordable accommodation so urgently needed, and develop residential quarters that meet the specific requirements of families. In addition to affordable housing, there is also a nationwide shortfall of day-care facilities for children – with more than 1,000 new spots needed in Bochum alone. We will let the annexed day nursery to an experienced nursery operator on a long-term lease, and thereby help to alleviate the shortage.”
“We are glad to have found a partner for this neighbourhood development in HIH Invest Real Estate, joining our effort to drive the positive development of Bochum’s Werne district. Situated in the heart of the Ruhr, Bochum has tremendous potential in the most diverse areas. We expect to see Bochum as a location develop in ways that will be positive and exciting for the city and its residents, but also for investors. Accordingly, we will keep stepping up our activities,” added Tobias Lucas Wendorf, property developer for the Ten Brinke Group.