New fund to invest €183 million in the Spanish residential market
Hines, the international real estate firm, and the California Public Employees' Retirement System (CalPERS), have formed HCS Interests LP to invest $231 million (€183 million) in Spanish real estate.
This new fund, which has a 10-year life and a target of three years for initial investment, will focus mainly on residential property along the Mediterranean coast. This fund follows similar joint ventures between CalPERS and Hines in other property markets. These include National Office Partners LP (investing in the US); HCB Holdings LP (Brazil); and HCM Holdings LP (Mexico).
Commenting on the move into Europe, Edouard Fernández, a general manager with Hines Spain, said: "This partnership represents our long-term commitment and confidence in Spain's residential market. There are enormous opportunities in the second and vacation home property market for both national residents and foreigners. Spain has excellent weather, cultural and economical conditions, and superior infrastructure development."
Hines entered the Spanish real estate market in 1996 and has since developed more than 3.2 million square feet (300,000 square meters) of office, retail and residential projects including the mixed-use Diagonal Mar development in Barcelona and the Pórtico office building in Madrid. Hines has offices in Madrid, Barcelona and Marbella.
CalPERS is the largest public pension fund in the United States with assets totaling approximately $204 billion, of which $10.8 billion is invested in real estate. Hines (www.hines.com) is a privately owned, international real estate firm involved in real estate investment, development and property management and its portfolio of projects currently includes almost 900 properties representing more than 345 million square feet of office, residential, mixed-use, industrial, hotel, medical, retail and sports facilities, as well as large, master-planned communities and land developments.
Source OPP July 2006