HIH Invest pushes towards European diversification

HIH Invest is aiming for European diversification beyond its traditional German stronghold in 2026, Felix Meyen, managing director at HIH Invest, told CRE Media Europe at MIPIM 2026 in Cannes.

While HIH Invest currently allocates 20% of its assets across Europe, the firm plans to launch new investment products—particularly food-anchored retail properties and residential funds—targeting major European metropolitan areas. These include cities such as Amsterdam, Copenhagen, Madrid, Paris, and Vienna, alongside key German hubs like Munich, Hamburg, and Berlin, according to Meyen.

However, HIH Invest is not currently eyeing CEE markets, largely due to investor reluctance stemming from the situation in Ukraine and ongoing financing difficulties in the region.

Meyen expressed optimism regarding financing in 2026, noting that banks are increasingly returning to the market and seeking new business following the challenging period of 2023–2024. While banks remain risk-averse, they are less restrictive than in previous years. HIH Invest’s core business, which maintains low leverage of up to 50% of investment volume, makes it an attractive client. As a result, German banks have offered favourable terms for speculative logistics development and value-added deals within Germany.

Meyen also provided an insightful overview of HIH Invest's four primary asset classes.

He believes the German and broader European office markets are "highly underestimated." Demand for prime, high-quality offices remains robust. While fringe locations may face volatility, CBDs still see very low vacancy rates and rising rents. He challenged the "don't touch offices" sentiment, asserting the market’s resilience.

The residential remains very strong, though it is characterised by high prices and compressed yields, resulting in a lower risk premium for investors.

Food-anchored retail properties continue to perform consistently well.

While the letting logistics market faces some headwinds due to the broader economic climate, prime locations continue to perform exceptionally. Logistics remains a pillar of the 2026 strategy.

Additionally, HIH Invest is actively expanding its value-added business, for which Meyen sees significant capital availability. He observed that the gap between capital demand and market opportunities is slowly closing—a positive shift compared to two years ago. This alignment is expected to drive an increase in value-added deals throughout 2026. Meyen confirmed that HIH Invest is currently engaged in several letters of intent and due diligence phases across all target areas.

Branislav Pekic