South Korea’s National Pension Service (NPS) and Hines have teamed up for a $1.5bn (€1.22bn) global ‘build-to-core’ real estate venture.
The US$672bn pension fund and US$144bn real estate fund manager will focus on urban infill developments across a range of sectors, including mixed-use, residential, office and logistics in high-barrier-to-entry markets.
One fifth of the venture is currently committed to projects in North America and Asia-Pacific.
NPS and Hines said they believe that “long-term investments in proven locations, supported by innovation and new technology, will capture sustained demand and create outsized value – which form the strategic investment focus of the partnership”.
Hines will co-invest, source, design and execute development opportunities, using its networks in 225 cities worldwide.
NPS and Hines have previously partnered on investments in Europe and North America, including major developments Sony Center in Berlin, One Vanderbilt and One Madison in New York.
“We believe there are significant opportunities to invest in the highest-quality, bulletproof assets that will provide long-term value to NPS stakeholders,” said Hyo-Joon Ahn, CIO of NPS.
“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.”
Hines Chairman and CEO Jeffrey C Hines said: “Like us, NPS values permanence, quality and innovation in core real estate. We see this new mandate as a natural extension of our longstanding relationship and a further opportunity to apply our real estate investments and execution skillsets to create differentiated multi-sector projects that enhance communities.”
Hines global CIO David Steinbach said: “We are pleased with the elevated level of trust extended to us by our valued partners like NPS over the past few years as we’ve leaned toward executing a stronger investment strategy even more focused on our investors’ needs.
“Discretionary capital programmes allow us to seize on the best opportunities, apply our skillsets, and focus on being the real estate partner of choice globally.”