Hines Global Acquires Silicon Valley Industrial Portfolio

Advanced Manufacturing Portfolio, Santa Clara, Calif. Image courtesy of Hines

Hines Global Income Trust, a public, non-listed REIT sponsored by Hines, has acquired the Advanced Manufacturing Portfolio, a massive industrial and manufacturing campus in Santa Clara, Calif. The 417,000-square-foot  asset was acquired for $107.1 million from DRA Advisors, according to a filing with the Securities and Exchange Commission.

The AMP, a four-building campus providing light manufacturing and research and development space, is fully leased to 10 tenants. Located in the heart of Silicon Valley, the site provides proximity to major technology tenants as well as a premier high-tech talent pool.

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Demand for light manufacturing and R&D space has grown in Silicon Valley in recent years but there is not enough space to meet the demand, said Sam Cheikh, managing director in the Hines Bay Area office, in prepared remarks. Cheikh added that the international real estate firm believes in the long-term supply and demand fundamentals of the product type, which has proven to be resilient to economic downturns.

Janice Walker, COO of Hines Global Income Trust, said the transaction further diversifies the REIT’s global portfolio and provides investors with exposure to a well-located, strategic asset in Silicon Valley.

The acquisition, which marks the third industrial and logistics closing for Hines Global in 90 days, increases the REIT’s industrial presence worldwide. In July, Hines Global acquired a logistics asset in the U.K. from AEW UK Investment Management’s AEW UK Core Property Fund for £20.635 million ($25.7 million). The 207,115-square-foot property in Wakefield, West Yorkshire, is fully leased to Integrated Third Party Logistics.

Hines is a longtime investor and developer in the industrial sector with a global track record of 314 projects in 12 countries. The firm has acquired 38 million square feet of space and developed 45 million square feet around the globe and has 8 million square feet of industrial projects under construction or in design.

DRA Advisors Deals

DRA Advisors, an investment advisor specializing in real estate investment and management for institutional and private investors, has $10 billion in assets under management across various sectors. The firm has about 405 industrial properties totaling 56 million square feet.

Last month, a joint venture of DRA Advisors and The Kane Co. Inc. acquired The Manchester Logistics Center, a 725,000-square-foot facility in Manchester, N.H., that is home to True Value’s Northeast regional distribution operations. In December 2019, DRA Advisors acquired a 16.3 million-square-foot industrial portfolio consisting of 106 warehouses in 16 markets in the Southeast, Southwest and Midwest from Sealy Strategic Equity Partners LP for $908.5 million.