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Hines 'immediate investment capacity' hits $1.2bn with data centres seen as attractive asset

Through a new fund, the company is planning to snap up facilities across the US with digital hosting infrastructure to be targeted too.

By João Marques Lima

Founder and Editor, The Tech Capital

3 Mins

August 12, 2021 | 11:18 AM BST

Real estate investment firm Hines has launched Hines US Property Partners (HUSPP), the firm’s new commingled fund for the US with $750 million of equity, which includes a $100 million investment from Hines, giving the fund over $1.2 billion in immediate investment capacity.

HUSPP is an open-ended, diversified fund targeting next-generation assets in top-performing submarkets in major US markets, the company said. T

he fund’s strategy is to “buy, create, and manage to core” through research-driven portfolio construction, smarter submarket and sector selection, vertically integrated value creation, and product designed for future demand.

HUSPP expects to invest across the living, industrial, office and mixed-use sectors, as well as select niche sectors, such as life sciences and self-storage, to construct a diversified portfolio that targets a balance of yield and growth.

The fund also expects to delve into data centre investments, its manager Adriana de Alcantara told Bloomberg.

“We also like niche sectors such as life sciences, data centres and self-storage,” she said.

Investors in HUSPP’s first closings include a group of institutional investors comprised of public pension plans, insurance companies, non-profit organisations and family offices.

As an open-ended, perpetual fund, HUSPP is expected to continuously raise capital, and over time will become a largescale, multi-billion-dollar institutional fund targeting core plus returns in the U.S. market.

David Steinbach, Global CIO at Hines, said: “As real estate continues its transformation into a service, we believe investors are finding increased value to work directly with large-scale operators who can bring innovation, flexibility and simplicity for the ultimate customers which are our tenants.

“This fund will provide investors with direct access to our best thinking and execution capabilities.”

Kirkland & Ellis LLP served as legal advisor to Hines in connection with the fund.

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João Marques Lima

Founder and Editor, The Tech Capital

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