(LONDON) – Hines, the global real estate investment, development, and property manager, in response to continued demand from global occupiers for prime logistics space and perceived opportunity in the current investment climate, has acquired five UK logistics sites in two separate transactions on behalf of its funds, Hines European Core Fund (HECF) and Hines European Property Partners (HEPP). The transactions mark Hines’ strong conviction in the logistics sector focused on quality assets in established distribution nodes throughout the UK and Europe.
HECF acquired 13,285 square meters of best-in-class space in London located on freehold land just across the cargo gate at Heathrow airport. For HECF, this investment consolidates its ownership at an infrastructure critical location that is set to service a total of c.53 million passengers in 20221.
Meanwhile, HEPP, Hines’ European flagship core-plus fund vehicle, acquired an off-market, fully occupied four-asset portfolio, its first UK acquisition, which spans 42,734 square meters, located across Yorkshire – Normanton, Doncaster, and Sheffield. Each location is essential to the respective occupier and is supported by excellent connectivity and transportation access with several of the assets primed for additional value-add ESG initiatives.
This year, Hines has completed €797 million of logistics deals across the Czech Republic, France, Germany, Italy, Poland, The Netherlands and The UK increasing its logistics AUM in Europe to €3.0 billion2. As a result, Hines has built a successful logistics investment and development business across Europe.
Greg Cooper, managing director – UK Logistics at Hines, commented: “Despite the current macroeconomic climate, we continue to see high levels of occupier demand for best-in-class logistics space in supply-constrained areas across the UK. Both acquisitions underpin our long-term strategy and conviction in the logistics sector focused on the right opportunities in the best locations, where we can utilize our on-the-ground logistics expertise to drive added value. We continue to actively seek these opportunities to scale up our exposure to UK logistics and deliver value for our clients.”
1 Source: Airport Review, May 2022
2 Data correct, as of September 30, 2022
Hines is a global real estate investment, development, and property manager. The firm was founded by Gerald D. Hines in 1957 and now operates in 28 countries. We manage a $92.3B portfolio of high-performing assets across residential, logistics, retail, office, and mixed-use strategies. Our local teams serve 634 properties totaling over 225 million square feet globally. We are committed to a net zero carbon target by 2040 without buying offsets.
Since entering Europe in 1991, Hines has grown its European platform to include offices in 17 cities as well as a presence in 79 cities in 14 countries. Hines oversees investment assets under management valued at approximately €25.3 billion and provides third-party property-level services totaling 4.7 million square meters in Europe, in Austria, Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Poland, Spain and the United Kingdom.
To learn more about Hines, visit www.hines.com and follow @Hines on social media.
¹Includes both the global Hines organization as well as RIA AUM as of June 30, 2022.
About Hines European Core Fund (HECF)
The HECF was set up in 2006 with the aim of providing investors with a resilient income profile and benchmarking outperformance, derived from a diversified portfolio of high-quality assets located in prime locations across major European cities. As of Q3 2022, the HECF portfolio was 98% occupied with an aggregate fund value of c.€3.2bn. The HECF portfolio is comprised of 65 properties across 37 investments, invested in 17 city markets across ten different European countries. In October 2022, HECF achieved the highest GRESB rating of 5/5 stars, ranking first in its peer group and being awarded Overall Global Sector Leader, both accolades having been achieved for an unprecedented six consecutive years.
About Hines European Property Partners (HEPP)
HEPP is a diversified open-ended core-plus fund focused on key European markets. HEPP will leverage Hines’ expertise and boots on the ground presence in 17 offices across Europe to identify investment opportunities in Europe’s most dynamic urban centers and gateway cities. The Fund will seek to acquire and develop sustainable assets across a range of sectors including logistics, office, living – residential, student and senior housing. HEPP was launched in Q2 2022.