Hines and QuadReal establish EUR1.25bn pan-European living JV
Hines, the international real estate firm, and global investment firm QuadReal Property Group Limited (QuadReal) have entered into a joint venture partnership to establish a new living-focussed programmatic joint venture targeting BTR (build to rent) properties, student accommodation and serviced apartments across continental Europe and regional UK markets.
Hines and QuadReal have an existing global relationship, working together on projects predominantly in the US and Mexico. This joint venture represents the first European partnership between the two firms, where they will be targeting a total investment volume of €500m equity, and €1.25bn when factoring in leverage.
The joint venture will build a portfolio over a 12 to 18-month period, focusing on France, Germany, Italy, Spain, the Netherlands, the Nordics and the core UK regional markets outside London.
Hines and QuadReal will together pursue strategic developments, re-developments and selected forward funding opportunities in major cities where economic and demographic trends are supportive of long-term value appreciation and sustainable investment. Through a combination of BTR properties, student accommodation and serviced apartments, the joint venture aims to deliver highest risk-adjusted returns for the most suitable product in each target city and sub-market.
Lars Huber, Chief Executive Officer for Hines Europe, says: “This joint venture partnership represents a fantastic opportunity for us to deploy our on the ground teams across a range of countries, capitalising on their local market knowledge to source and execute acquisitions and developments for the account. In recent years we have diversified our portfolio 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 joint venture partner.”
Alex Knapp, Chief Investment Officer for Hines Europe, said: “QuadReal’s global presence, residential pedigree and overall approach to real estate investment makes them a natural fit for Hines in this joint venture. The macro trends of population growth and urbanisation, combined with a general market under supply in Europe make the residential sector a sustainable long-term investment for us.”
Jonathan Dubois-Phillips, President, International Real Estate, says: “This new residential venture with Hines fits squarely within QuadReal’s business model to invest in high conviction strategies with best-in-class partners. We look forward to working with Hines as we expand our business outside of Canada and further into Europe.”
Jay Kwan, Managing Director of Europe for QuadReal, says: “We’re excited to be extending our relationship with Hines over to Europe, particularly in a sector in which we jointly share a strong conviction. QuadReal’s extensive residential experience in North America gives us the courage of our conviction to invest boldly into the sector, particularly beside a partner with such breadth and depth of track record across key European cities.”