US real estate developer Hines and US pension fund Calpers (California Public Employees' Retirement System) are reducing the size of their HCS Interest joint venture fund from EUR 183 mln to EUR 35 mln. The fund, headed by Carlos Matta, was launched in June 2006 and was targeting the Spanish residential market. According to Spanish newspaper Expansion, the two companies said the decision was prompted by 'the difficult situation in the Spanish residential market' and added that the vehicle, with a life of 10 years, is likely to report a loss.
US real estate developer Hines and US pension fund Calpers (California Public Employees' Retirement System) are reducing the size of their HCS Interest joint venture fund from EUR 183 mln to EUR 35 mln. The fund, headed by Carlos Matta, was launched in June 2006 and was targeting the Spanish residential market. According to Spanish newspaper Expansion, the two companies said the decision was prompted by 'the difficult situation in the Spanish residential market' and added that the vehicle, with a life of 10 years, is likely to report a loss.
Hines is also halting two developments in Spain as a result of falling demand for residential property in the country, the paper added. Hines, which entered Spain in the early 1990s, announced in 2006 the formation of HCS Interests LP and said it was capitalized with EUR 183 mln.
