Hines forms $1.5 billion investment vehicle

CIBC Square, Toronto. Image courtesy of Hines

hines recently revealed the formation of an investment vehicle that will target the acquisition and development of various commercial real estate assets in strategic markets across Canada. The Houston-based global real estate company has closed a capital round of C$2 billion, or approximately $1.5 billion, for the pursuit of investment prospects.

Hines’ new vehicle will be present in the markets of Toronto, Vancouver, Canada, Montreal and Calgary, Canada. In terms of property types, the strategy is to focus on some of the strongest areas of the commercial real estate market.

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“[We will] target investment and development opportunities with a focus on place-making, mixed-use developments, differentiated multi-family residential rental communities and hospitality office projects, all with an underlying ESG component “, Avi Tesciuba, Senior General Manager and National Head for Hines Canada, Told commercial real estate director.

As a report on the Canadian real estate market by JLL notes, all asset classes in the country saw strong demand in the first quarter of 2022. And in the office sector, where the battle for talent is relentless, demand for new collaborative turnkey products the space continues to drive rental activity.

Timing is everything

Hines has had an operational presence in Canada since 2004, and the creation of the new vehicle comes several years after the introduction of the company’s first Canadian-sponsored investment and development venture. Hines felt the time was right for a second round.

“We expect the current macroeconomic environment to lead to interesting and attractive investment opportunities in key metropolitan markets across Canada, and the vehicle will allow us to be nimble and responsive when we have conviction of an opportunity. “, said Tesciuba. “The fundamentals are strong – a stable investment climate, safe and solid education and an open immigration policy.”

For confidentiality reasons, Hines is not free to disclose details of any pending projects or acquisitions under the new investment venture. However, agreements are certainly being prepared. “We have a deep pipeline fueled by our hyper-local teams on the ground,” Tesciuba added.

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