Hines has teamed up with Canada’s QuadReal Property Group to launch a €1.25bn (£1.1bn) joint venture targeting build-to-rent, student housing and serviced apartments.
The joint venture will be funded with €500m of equity – €1.25bn of capacity, when factoring in leverage.
The partnership aims to build a portfolio over a 12 to 18-month period, focusing on France, Germany, Italy, Spain, the Netherlands, the Nordics and core UK markets outside London.
These will include strategic developments, redevelopments and forward-funding opportunities.
QuadReal is the real estate arm of British Columbia Investment Management Corporation.
The two companies have previously invested together in other markets, mainly in the US and Mexico.
Lars Huber, chief executive for Hines Europe, said: “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, added: “The macro trends of population growth and urbanisation, combined with a general market undersupply in Europe make the residential sector a sustainable long-term investment for us.”
Jay Kwan, managing director of Europe for QuadReal, said: “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.”
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
