LHI Group - 50 consecutive years of positive results

February 27, 2024

At the end of the year, assets under management totalled EUR 14.2 billion.

In the closed fiscal year, the LHI Group from Pullach near Munich realised transactions in the total amount of EUR 3,350 million. It invested around EUR 3,000 million in new projects.

In the segment Structured Finance, the volume of new business totalled EUR 2,850 million. In August 2023, the LHI Group was able to design a leasing structure for currently 90 newly ordered city trains (S-Bahn) in Munich and successfully implemented the structured financing with the operator and the public transport authority. The first newly developed S-Bahn trains are scheduled to go into operation from the middle of 2029. Other regional passenger rail transport (SPNV) projects included nine battery-electric vehicles in Berlin and north-east Brandenburg as well as a hire-purchase solution for vehicles used on routes in eastern Bavaria.

In real estate leasing, various commitments for customers from different industries could be successfully implemented in 2023 as part of new construction leasing, buy-and-lease and sale-and-lease-back structures. Among other things the financing of a public school for a major private education provider in southern Germany was presented. A financing solution could also be realised for a traditional German science publisher.

"We are very pleased that with our structured financing we make a contribution to resource- and environmentally friendly local transport and to the promotion of education and science", says Thorsten Kuhle, Head of Structured Finance at the LHI Group.

In 2023, the investment business was again characterised by ESG-compliant investments in the renewable energy asset class. The volume of new business for all asset classes amounted to EUR 150 million. In the asset class of real estate, several forward deals could be taken over as planned and several spaces were also re-let. Despite the market situation, real estate from five legacy funds were successfully sold, which led to an annual result that was above plan.

Last year, 11 new wind and solar parks and 5 new hydropower plants were integrated into the portfolio of investment products in the renewable energies segment. Last year, the portfolio of renewable energy plants under management generated around 1.5 billion kWh of electricity and saved around 570,000 tonnes of CO2. The successful sale of an older wind farm for repowering purposes should also be emphasised. The excellent cooperation between engineers and the transaction and portfolio management teams at LHI during the sale process resulted in a very favourable outcome for investors.

The international rating agency Scope once again honoured the LHI Group with the award for Best Asset Manager Transportation in 2023. It was also nominated in the renewables and real estate asset classes, achieving a top 5 ranking. The ESG Reporting Award from Exxecnews was also presented to LHI for the second time. The excellent asset management quality of the LHI Group was once again confirmed with an AA asset management rating result from Scope in the fourth quarter of 2023.

"2023 was by all means a difficult market environment in all asset classes. We are, therefore, all the more pleased that we were so successful despite these difficult conditions. We think in the long-term and are, therefore, also able to act in challenging markets with foresight. LHI, its business partners and investors as well as its employees benefit from this sustainable business policy. LHI will remain a stable partner in the future", says Markus Niedermeier, Managing Director of the LHI Group.

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