Hines launches $ 1.2 billion investment fund
Hines announced the launch of Hines US Property Partners (HUSPP), a new flagship mixed fund for the United States with $ 750 million in equity, including a $ 100 million investment from Hines, giving the fund more than $ 1 , $ 2 billion in immediate investment capacity.
HUSPP is a diversified open-ended fund targeting next-generation assets in the best performing submarkets of the major US markets.
The fund’s strategy is to “buy, build and manage to the core” through research-driven portfolio construction, smarter selection of sub-markets and sectors, vertically integrated value creation and a product designed for future demand. HUSPP plans to invest in the housing, industrial, office and mixed-use sectors, as well as certain niche sectors, such as life sciences and self-storage, to build a portfolio. diversified that seeks a balance between yield and growth.
Investors in HUSPP’s early shutdowns include institutional investors consisting of public pension plans, insurance companies, nonprofits and family offices.
As part of this initial fundraiser, Hines’ $ 100 million commitment to the fund underscores the strong alignment of the company’s interests with those of its investors. As a perpetual open-ended fund, the HUSPP is expected to continually raise capital and, over time, will develop into a large-scale, multi-billion dollar institutional fund targeting core plus returns in the US market.
David Steinbach, Global CIO at Hines, said: “As real estate continues to transform into service, we believe investors find increased value in working directly with large-scale operators who can bring innovation, flexibility and simplicity to businesses. ultimate customers who are our tenants. . This fund will provide investors with direct access to our best thinking and execution skills.
The fund’s strategy will focus on Hines ‘proprietary top-down research and leverage Hines’ field execution platform to create and hold what Hines sees as the core assets of the future. The fund will seek to maximize asset-level value through active management and undertake selective development to create next-generation assets that meet future tenant demand.
“As we emerge from the pandemic, the real estate industry is at a critical inflection point and successful managers will need to examine their portfolios in an increasingly dynamic environment,” said Alfonso Munk, CIO of Americas at Hines.
“We are excited to launch this fund and begin to implement our buy, build and manage core strategy to meet investor demand and lead the industry in redefining future standards for the industry. basic real estate. “
HUSPP will seek to deliver long-lasting, long-lasting assets that align with Hines’ corporate ESG initiative which focuses on tackling the climate emergency and reducing the carbon footprint of the built environment.
“We are grateful for the support we received from our initial investors,” said Adriana de Alcantara, HUSPP fund manager at Hines. “As we continue to strategize and invest on behalf of the fund, we will use our core strengths – global reach, operational expertise and vertically integrated management capabilities – which have served our investors throughout our company’s history. . “
“Executing the entrepreneurial vision of my grandfather and our founder, Hines has been an active and dynamic investor and developer for the past six decades,” said Laura Hines-Pierce, Senior Managing Director of Hines CEO Office . “This is a monumental achievement for Hines as we seek to grow our business by meeting investor needs through an expanded flagship fund lineup and continue to build on my grandfather’s legacy. “
Kirkland & Ellis LLP acted as legal counsel to Hines in connection with the fund.
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