Hines has teamed up with Canadian investor QuadReal Property Group to launch a €1.25 bn pan-European residential investment programme.
US-headquartered Hines, which has 17 offices in Europe and operates in or tracks 23 markets here, will use its teams to source and execute acquisitions for the new Living Fund partnership.
The joint venture will invest in developments, redevelopments or forward fundings in BTR (build to rent), student accommodation and serviced apartments across continental Europe and regional UK markets.
The pair said they are targeting an investment volume of €500 mln of equity topped up to €1.25 bn with leverage. The partnership will prioritise investments in France, Germany, Italy, Spain, the Netherlands, the Nordics and core UK regional markets outside London.
Gaining scale in residential assets outside North America has been a priority for QuadReal under Dennis Lopez, who became CEO in June 2017. He is leading a drive to increase QuadReal’s international focus.
QuadReal is owned by British Colombia Investment Corporation which has approximately CAD155 bn under management.
So far, QuadReal’s largest European residential transaction is its one-third investment in the Cherry Park Partnership managed by Westfield which began construction of 1,200 homes for rent next to Stratford City shopping mall in London last summer.
QuadReal has also invested in multifamily in Dublin with Round Hill Capital and with Canadian firm Realstar in London.
Alex Knapp, Hines CIO for Europe, said QuadReal was ‘a natural fit for this joint venture. The macro trends of population growth and urbanization, combined with the general market undersupply in Europe make the residential sector a sustainable long-term investment for us’.
Lars Huber, CEO for Hines Europe, said: ‘In recent years we have diversified into the living sector in pockets but this is the first time we have embarked on a consolidated pan-European drive into the sector on a single account with a JV partner.’
