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Hines Launches $1B Fund to Invest in Undervalued Properties, Including Self-Storage

Hines, an international real estate development, investment and management firm, has launched the Hines U.S. Property Recovery Fund, which is intended to raise $1 billion in equity investments toward the acquisition and renovation of undervalued U.S. properties. If it reaches its goal, the fund would have $2.5 billion to purchase self-storage facilities in addition to residential, office and student-housing real estate across 30 markets, according to the source.

Thus far, the fund has raised $590 million from a mix of investors that includes domestic and international pension funds, family offices, financial institutions, foundations and insurance companies. It recently acquired two logistics sites in California for $186 million and has plans to convert an office building in the Mountain West region to rental housing, the source reported.

The fund is specifically targeting value-add properties that’ve been negatively impacted by the coronavirus pandemic as well as assets in sectors like logistics that have benefited from the rise in e-commerce. “COVID really provided a moment for occupiers and investors in real estate to look at their portfolio and re-examine their needs—and, in many cases, pivot,” Dan Box, a fund manager at Hines, told the source. “There’s a resorting of preferences and reprioritizing of certain elements. Those forward-looking trends are what we’re looking to play into.”

The move follows last year’s launch of Hines U.S. Property Partners, an open-ended fund focused on industrial, life-sciences, mixed-use, multi-family, office, self-storage and other property investments.

Hines entered the self-storage sector in 2018, with a plan to acquire and develop properties in the Southwest. It’s projects include Val Vista & Queen Creek Self-Storage in Gilbert, Arizona; Las Colinas Self-Storage in Irving, Texas; and Woodbridge Self-Storage in Wylie, Texas, according to the company website.

Founded in 1957, Hines is a privately owned global real estate investment firm with a presence in 27 countries. It has approximately $161 billion of assets under management and 180 development projects underway around the world. The firm’s current management portfolio comprises about 173 million square feet, the release stated.

Source: Crain's Chicago Business, Hines Launches $1 Billion Fund for Undervalued U.S. Properties

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