Hines teams up with South Korea pension fund on $1.5bn joint venture
Texas-based investor Hines and the National Pension Service of Korea have launched a $1.5bn (£1.1bn) equity joint venture, focusing on build-to-core development.
The jv will pursue urban infill developments across sectors including mixed-use, residential, office and logistics in high-barrier-to-entry markets.
A fifth of the venture is committed to projects in the US and Asia-Pacific regions.
Texas-based investor Hines and the National Pension Service of Korea have launched a $1.5bn (£1.1bn) equity joint venture, focusing on build-to-core development.
The jv will pursue urban infill developments across sectors including mixed-use, residential, office and logistics in high-barrier-to-entry markets.
A fifth of the venture is committed to projects in the US and Asia-Pacific regions.
Its aim is to create a portfolio of prime assets “resilient to market uncertainties”.
NPS and Hines said long-term investments in “proven” locations, supported by innovation and technology, will “capture sustained demand and create outsized value”.
Hines will be responsible for sourcing, designing and executing development opportunities globally.
NPS and Hines have previously partnered on investments across product types and strategies in Europe and the US. Their collaborations including the Sony Center in Berlin, One Vanderbilt and One Madison in New York.
Hyo-Joon Ahn, chief investment officer of NPS, said: “We believe there are significant opportunities to invest in the highest-quality, bulletproof assets that will provide long-term value to NPS stakeholders.
“The current economic climate, shaped by global responses to the pandemic, has impacted all sectors of commercial real estate.
“This venture has committed to a long-term strategy capitalising on the transformation of living environments, consumer behaviour and space-use patterns combined with latest technology in real estate development.”
Jeffrey Hines, chairman and chief executive of Hines, said: “We see this new mandate as a natural extension of our long-standing relationship and a further opportunity to apply our real estate investments and execution skillsets to create differentiated multi-sector projects that enhance communities.”
NPS is one of the largest pension funds in the world, with around $672bn in assets in September.
Hines has around $144.1bn of assets under management, including $75.5bn for which it serves as investment manager and $68.6bn where it provides third-party property-level services.
The firm’s current property and asset management portfolio comprises 576 properties, totalling more than 246m sq ft.
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