our asset classes

Real Estate

Germany is one of the most popular real estate investment locations. This will not change in the near future.

Why you should invest in Real Estate

When it comes to material assets, real estate is the most demanded asset class and therefore particularly important. Whether professional, semi-professional or private investors, real estate is part of the investment strategy for all investor groups.

Long-term returns, low volatility and opportunities for value appreciation are equally valued by investors. Not all properties are the same. Experts recognize the differences and thus also the opportunities and risks from investment opportunities. Active asset management today secures the earnings opportunities of tomorrow.

Why the LHI Group is your investment partner in the real estate asset class

The LHI Group has more than 40 years of experience with real estate and is one of the leading investment and asset managers in Germany.

The goal of each real estate investment is to maintain the value and realise potential increases in value. To achieve this one needs the necessary expertise of the real estate market, a broad network of partners as well as the experience, and the ability to identify potentials and risks at an early stage. All real estate experts are in-house at LHI and can meet all of these important criteria.

Our investment focus

Geographically, our focus is on investments in real estate in prime locations in large economic centres. Potential locations in B-, C- and D-Cities, properties with office, retail and service use with interesting utilisation and yield concepts are our investment core.

Investments in properties that meet our requirements with view to sustainability aspects, e.g. educational properties or assisted living, are getting more and more important.

 

Thomas Schober, Ansprechpartner Investment Management Real Estate
Your contact person
Thomas Schober LHI Kapitalverwaltungsgesellschaft mbH Managing Director, Real Estate Department
Tel.: +49 89 5120-1539 Fax: +49 89 5120-2539 t.schober@lhi-kvg.de

Track record Real Estate

Number
of investments in the real estate asset class

100

Overall investment funds launched to date
in the real estate asset class

approx. EUR 5.4 billion

Overall, LHI has a management portfolio of rental area of

approx. 1.4 million square meters

of which around 99 % are leased.

Breakdown of types of use

References

  • Office and business centre I in Freiburg

    Space: approx. 2,270 sqm
    Acquisition: August 2016
    Project support and rental management control

  • Office and business centre II in Freiburg

    Space: approx. 2,140 sqm
    Acquisition: August 2016
    Asset management
    Project support and rental management control

  • Office and business centre in Duesseldorf

    Space: approx. 6,290 sqm
    Acquisition: July 2017
    Repositioning in the market
    Rental process control
    Selection of service provider after retender

  • Office and business centre in Hamburg

    Space: approx. 2,060 sqm
    Acquisition for an individual mandate
    Reduction of vacancies
    Modernisation of rental spaces
    Optimisation of the revenue side

  • Residential and commercial property in Leipzig

    Space: approx. 800 sqm
    Acquisition for an endowment fund
    October 2017

  • Residential and commercial property in Bonn

    Space: approx. 1,045 sqm
    Acquisition for a special AIF
    September 2014
    Rental process control
    Re-letting of the retail spaces

  • Office building in Munich

    Space: approx. 2,590 sqm
    Rental and asset management for an individual mandate
    July 2015

  • Office building in Regensburg

    Space: approx. 2,650 sqm
    Acquisition for a special AIF December 2012
    Lease prolongation of 10 years with the anchor tenant
    Sale for a special AIF
    September 2017

Current locations of our real estate

frequently asked questions

FAQ

For us "Core" to "Value-Added/Manage to Core" locations are interesting. For example, our premium property portfolio is mainly invested in 1a / high-street locations, with high property quality and long-term leases with high tenant credit standing. In the "Core Plus" and "Value-add/Manage to Core" investment strategies, the value is created by active asset management and repositioning of the property.

We mainly invest in commercial properties (office, retail trade and hotels). Mixed use properties often support our diversification approach. Residential properties as investment assets are not excluded. Investments relevant to respective use, together with the structural possibilities of the building, are decisive for our investments.

Value is created through proactive asset and portfolio management. Among others, this includes e. g. renegotiations and a modernisation of the rented spaces leading to an increase in rental income.  Further factors in generating value are the expansion of the rentable spaces by a requalification of space reserves, extensions, utilisation of construction reserves and modification of building rights.  The revenue side may be optimised by leasing the spaces to tenants with commercial utilization of higher standards, reducing the vacancy rate and performing an active receivables management. The expenditure side may be optimised by an optimisation and reduction of ancillary costs and maintenance costs while maintaining a consistent level of services.

Our investment strategies take into account specific legal requirements (e.g. Investment Management Act KAGB, Investment Tax Law), as well as investment-specific requirements for mixed-risk or risk diversification by diversifying investments in a portfolio with properties in different locations with several tenants or diversified use as well as different contract periods.

Renewables

Renewable energies are investments for our future. The path to ensure the long-term supply of renewable energies is irreversible. Therefore, the expansion and demand for solar parks and wind farms is growing.

Why you should invest in Renewables/Infrastructure

Due to their long production cycle of at least 20 to 30 years, renewable energies are particularly suitable for investors with a long-term investment horizon.

Reduced production costs allow economical operation even at low subsidy rates. Currently rising electricity prices make operation conceivable without subsidies.

In addition, there are further positive effects such as additional revenue opportunities through qualification as green energy and the very low correlation with other investments.

Why the LHI Group is your investment partner in the asset classes Renewables/Infrastructure

Commercial management, portfolio management and performance management are completely in our hands. This gives you an experienced partner for the entire duration of the investment.

The technical management of our parks is carried out together with our project partners.

We only work with project partners who have been tested by us through an intensive selection process and who meet our high standards.

Our investment focus

In the field of renewable energies we are currently concentrating on photovoltaics and wind-onshore. In the future, our focus will also be on other technologies such as water. We deliberately decided to invest only in Euro countries which offer stable legal conditions with regard to feed-in tariffs.

Franz Unterbichler, Ansprechpartner Investment Management Renewables
Your contact person
Franz Unterbichler LHI Kapitalverwaltungsgesellschaft mbH Managing Director, Renewables Department
Tel.: +49 89 5120-1433 Fax: +49 89 5120-2433 f.unterbichler@lhi-kvg.de

Track record Renewables

Number of investments and portfolio structures
in the renewables asset class

13

Overall investment funds launched to date in the renewables asset class
 

1.2 billion

LHI wind farms

21

LHI solar parks

28


Total investment volume of
EUR 1.2 billion


Total rated output
573 MW/MWp

Solarpark Auw
Solarpark Bitterfeld
Solarpark Cavillargues
Solarpark Doberschütz
Solarpark Euerwang
Solarpark Fahlhorst
Solarpark Falkenberg
Solarpark Finsterwalde
Solarpark Fisch
Solarpark Gardelegen
Solarpark Georgsdorf
Solarpark Gerdshagen
Solarpark Haldensleben
Solarpark Hassel
Solarpark Jabel
Solarpark Kinheim
Solarpark La Rouchouse
Solarpark Lauingen
Solarpark Leiwen
Solarpark Mazaugues
Solarpark Mulfingen
Solarpark Neuhardenberg
Solarpark Prenzlau
Solarpark Storkow
Solarpark Thüngen
Solarpark Wanzleben
Solarpark Welzow
Solarpark Westerheim
Windpark Coesmes
Windpark Grebenau
Windpark Haiger
Windpark Heidehof
Windpark Hohenmölsen
Windpark Homberg
Windpark Hustedt
Windpark Imsweiler
Windpark Kusey
Windpark Luko
Windpark Niedelehme
Windpark Niederstetten
Windpark Pattensen
Windpark Perles
Windpark Pritzwalk
Windpark Seuil
Windpark Terres Blances
Windpark Teutleben
Windpark Trendelburg
Windpark Vallée du Don
Windpark Velburg

Aviation

According to many forecasts, the global average demand for passenger and cargo flights will continue to rise over the next ten or twenty years.

Why you should invest in Aviation

Aircraft, engines and helicopters can be individually secured and can in principle be used worldwide at any time. The investment is therefore not tied to a specific location. In addition, the aviation market is highly regulated and standardized for safety reasons - an A320 is always an A320. This also means that these assets are more liquid and the determination of the purchase price more transparent than with other "alternative assets". The costs of maintenance and the procurement of spare parts are also well calculable and the periods are relatively easy to estimate.

Why the LHI Group is your investment partner in the asset class Aviation

We have many years of experience in this asset class as well. We work with recognised aerospace contract partners and have extensive contacts with globally operating and renowned aerospace market players in the aviation industry. This allows us to quickly and sustainably implement investment products in the aviation sector.

Our investment focus

The LHI aviation asset class consists mostly of investments in aircraft turbines, air planes and helicopters.

Markus Niedermeier, Ansprechpartner Investment Management
Your contact person
Markus Niedermeier LHI Kapitalverwaltungsgesellschaft mbH Managing Director, Aviation Department
Tel.: +49 89 5120-1456 Fax: +49 89 5120-2456 m.niedermeier@lhi-kvg.de

Track Record Aviation


Number of active investments in
the aviation asset class

12


Overall investment funds launched to date in the aviation asset class

approx. EUR 1 billion

With the GE 90 115 B,
we have the most powerful engine
in the portfolio with a thrust of
115,000 Newton.

FREQUENTLY ASKED QUESTIONS

FAQ

Base value is the economic base value. The expert's valuation in an open, unregulated and stable market environment with a balanced supply-demand ratio. The base value of an aircraft / turbine is defined by projected historical values.

The soft value is the future purchase price that can be achieved at a lower limit in a normal market. The market is characterised by a higher demand than the supply and therefore negatively affected. This can occur with reduced air traffic, lower transactions on the market or with new technologies.

Market value is the value of the market. The appraiser's assessment of a probable purchase price, adjusted to market conditions at the time of the request. It is assumed that the aircraft / turbine is in good condition, the hypothetical sales partners are willing and creditworthy and the sale takes place in an open and unregulated market.

TheCurrent Maintenance Adjusted Market Value is theprobable realisation value. The valuation takes into account current aircraft / turbine conditions, such as, for example, hours (flight hours) cycles (take-offs and landings) and maintenance as well as the current market.

Maintenance reserves are the maintenance reserves, also known as rental surcharge. These are the amounts collected during the lease term in order to cover the costs of maintenance.

Full life refers to the operating state of an aircraft or a turbine that corresponds to zero hours of flight. A contract with the return in full-life condition stipulates that in cases where worn parts are not replaced or fundamentally overhauled, financial compensation payments must be made.

The IATA "International Air Transport Association" is an international association of the aviation industry, which represents 240 airlines with over 84% of the total air-traffic volume.

ISTAT is the "International Society of Transport Aircraft Trading". This international association of transport aircraft trade with over 4,000 members of various airlines, aircraft/engine manufacturers, etc. is the central coordinator of certification requirements, issuing of guidelines and standards, and also provides a platform for information exchange.

LLP's "Life Limited Parts" are the wear parts of an aircraft or engine.

Narrow-bodies are small narrow-body aircraft, as a rule small-haul or medium-haul aircraft with a series of gears, e.g. A320 or Boeing 737.

Wide-bodies are wide-body aircraft, as a rule long-haul aircraft with more than one gear such as Boeing 777 or the A380.