Hines Forms $1.5B 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 firm has closed on C$2 billion, or approximately $1.5 billion, of capital for the pursuit of investment prospects.

Hines’ new vehicle will home in on the Toronto, Vancouver, Can., Montreal and Calgary, Can., markets. In terms of property types, the strategy involves focusing on some of the strongest sectors of the commercial real estate market.

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“[We will] target investment and development opportunities with an emphasis on placemaking, mixed-use developments, differentiated multifamily rental residential communities, and hospitality-forward office projects—all with an underlying ESG component,” Avi Tesciuba, senior managing director & country head for Hines Canada, told Commercial Property Executive.

As noted in a report on Canada’s real estate market by JLL, all asset classes in the country witnessed strong demand in the first quarter of 2022. And in the office sector, where the battle for talent is unrelenting, the demand for new, collaborative turnkey space continues to drive leasing 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 sponsored Canadian investment and development venture. Hines felt the timing was right for a second go-round.

“We expect that the current macroeconomic environment will lead to interesting and attractive investment opportunities in Canada’s major metro markets, and the vehicle will allow us to be nimble and responsive when we have conviction in an opportunity,” Tesciuba said. “The fundamentals are strong—stable investment climate, safe, strong education, and open immigration policy.”

For confidentiality reasons, Hines is not at liberty to disclose details of any projects or pending acquisitions in the works through the new investment venture. However, deals are certainly brewing. “We have a deep pipeline sourced by our on-the-ground, hyper-local teams,” Tesciuba added.