HOUSTON--(BUSINESS WIRE)--Hines, the international real estate firm, announced today a major joint venture with New York State Common Retirement Fund (NYSCRF), to invest in more than $1 billion of office and medical office projects in the U.S. The venture, called Hines Corporate Properties II (HCP II), capitalized with $500 million of equity, will develop, acquire, own and manage buildings primarily occupied by single-tenant users.
The venture will follow a similar strategy as the successful Hines Corporate Properties I, which was executed from 1997-2004 by the same venture partners. HCP I developed six built-to-suit office projects and acquired three single-tenant buildings resulting in a portfolio of approximately three million square feet.
“We believe the timing is right to reconstitute this venture and strategy to pursue development opportunities driven by major tenants,” said Hines President and CEO Jeff Hines.
Hines Vice President Doug Donovan, who will manage the venture, commented, “Hines can be a great resource to corporate tenants that choose not to commit a large portion of their capital to real estate, as well as to those who want more flexibility in determining their long-term space needs. Hines' development and management experience will further mitigate the risk associated with developing their own facilities and provide tenants with the highest quality product for the price."
Hines Corporate Properties II will contract with the Hines firm to provide a full range of real estate services including site selection, development management, conceptual construction, construction management, property management and operations. Hines' development and management expertise, coupled with its in-depth knowledge of more than 65 key domestic markets, will benefit Hines Corporate Properties II clients.
The New York State Common Retirement Fund exists to finance benefits for more than one million active and retired state and local government employees, police officers and firefighters. With approximately $146.5 billion of assets under management, it is the third largest public pension plan in the U.S.
Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide. The firm’s historical and current portfolio of projects that are underway, completed, acquired and managed for third parties includes 1,126 properties representing more than 459 million square feet of office, residential, mixed-use, industrial, hotel, medical and sports facilities, as well as large, master-planned communities and land developments. With offices in 106 cities in 17 countries, and controlled assets valued at approximately $23.7 billion, Hines is one of the largest real estate organizations in the world. Hines is also a world leader in sustainable real estate strategies, with extensive experience in LEED®, ENERGY STAR®, BREEAM, Haute Qualité Environnementale and DGNB green building rating systems. Visit www.hines.com for more information.