Hines and QuadReal Establish €1.25 Billion Pan-European Living Joint Venture
Hines, the international real estate firm, and global investment firm QuadReal Property Group Limited (“QuadReal”) have entered into a joint venture partnership to establish a new living-focused programmatic joint venture targeting build-to-rent (BTR) properties, student accommodation and serviced apartments across continental Europe and regional UK markets.
Hines and QuadReal have an existing global relationship, working together on projects predominantly in the U.S. and Mexico. This joint venture represents the first European partnership between the two firms, where they will be targeting a total investment volume of €500m equity, and €1.25bn when factoring in leverage.
The joint venture will build a portfolio over a 12 to 18-month period, focusing on France, Germany, Italy, Spain, the Netherlands, the Nordics and the core UK regional markets outside London.
Hines and QuadReal will together pursue strategic developments, re-developments and selected forward-funding opportunities in major cities where economic and demographic trends are supportive of long-term value appreciation and sustainable investment. Through a combination of BTR properties, student accommodation and serviced apartments, the joint venture aims to deliver highest risk-adjusted returns for the most suitable product in each target city and sub-market.
Lars Huber, CEO, Hines European Region, said, “This joint venture partnership represents a fantastic opportunity for us to deploy our on the ground teams across a range of countries, capitalizing on their local market knowledge to source and execute acquisitions and developments for the account. In recent years we have diversified our portfolio into the living sector in pockets, but this is the first time we have embarked on a consolidated pan-European drive into the sector on a single account with a joint venture partner.”
Alex Knapp, Chief Investment Officer, Europe, said,“QuadReal’s global presence, residential pedigree and overall approach to real estate investment makes them a natural fit for Hines in this joint venture. The macro trends of population growth and urbanization, combined with a general market under supply in Europe make the residential sector a sustainable long-term investment for us.”
Jonathan Dubois-Phillips, President, International Real Estate at QuadReal, said, “This new residential venture with Hines fits squarely within QuadReal’s business model to invest in high conviction strategies with best-in-class partners. We look forward to working with Hines as we expand our business outside of Canada and further into Europe.”
Jay Kwan, Managing Director of Europe for QuadReal, said, “We’re excited to be extending our relationship with Hines over to Europe, particularly in a sector in which we jointly share a strong conviction. QuadReal’s extensive residential experience in North America gives us the courage of our conviction to invest boldly into the sector, particularly beside a partner with such breadth and depth of track record across key European cities.”
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 219 cities in 23 countries. Hines has approximately $124.3 billion of assets under management, including $63.8 billion for which Hines provides fiduciary investment management services, and $60.5 billion for which Hines provides third-party property-level services. The firm has 148 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,362 properties, totalling over 449 million square feet. The firm’s current property and asset management portfolio includes 514 properties, representing over 222 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information.
Since entering Europe in 1991, Hines has grown its European platform to include offices in 16 cities as well as a presence in 47 cities in 12 countries, with €18.2 billion of assets under management in Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Poland, Spain and the United Kingdom.
Headquartered in Vancouver, Canada, QuadReal Property Group is a global real estate investment, operating and development company. QuadReal manages the real estate and mortgage programs of British Columbia Investment Management Corporation (BCI), one of Canada’s largest asset managers with a CAD $153.4 billion portfolio.
QuadReal manages a CAD $37.6 billion portfolio spanning 23 Global Cities across 17 countries. The company seeks to deliver strong investment returns while creating sustainable environments that bring value to the people and communities it serves. Now and for generations to come.
Visit www.quadreal.com for more information.
George C. Lancaster
Senior Vice President, Corporate Communications
713 966 7676