GLOBAL - The $210bn (€158bn) California Public Employees Retirement System (CalPERS) has given its latest endorsement to Hines' Brazilian real estate expertise by committing to the third in a series of joint ventures in the South American market.
CalPERS has committed $190m to the latest Hines CalPERS Brazil (HCB) joint venture after providing $95m of capital for HCB I in 2005 and $285m for HCB II in 2007.
It has been a successful series for CalPERS.
For example, HCB I was valued at $142.4m at the end of 2009, providing earnings of 128.3% for one year and 54.9% for three years.
The joint venture will continue to invest across the sectors of office, industrial and residential in Brazil.
Joe Dear, chief investment officer at CalPERS, said: "Hines has 12 years of operating experience in the fast-growing Brazilian real estate market, where there's a mounting demand for commercial buildings and homes.
"Interest rates have been favourable, and increased earnings in Brazil have spurred the development of shopping centres, warehouses, offices and residential housing."
Through its office in São Paulo, Hines has committed CalPERS' capital to the development of millions of square feet of prime office, industrial and residential space in several markets throughout Brazil.
One of the highlights of the joint venture was the 2007 acquisition of the BankBoston Building, a 29-story, 409,000-square-foot architectural landmark in São Paulo.
Hines also invests in other global markets on behalf of CalPERS, including Mexico, China and Europe.