Hines Completes Logistics Acquisition on Behalf of its European Value Fund
JANUARY 9, 2019
(LONDON) – Hines, the international real estate firm, has acquired Cribbs Causeway Distribution Centre, a value add-profile logistics investment located in Bristol, a key United Kingdom distribution hub, on behalf of the Hines European Value Fund (HEVF).
Hines’ UK team advised HEVF on the fund’s first logistics acquisition, which was acquired off market from M&G Real Estate and is HEVF’s fourth acquisition in the last 12 months.
Cribbs Causeway Distribution Centre is located adjacent to Junction 17 of the M5 motorway, seven miles north of Bristol’s city center, and contains 423, 000 square feet of logistics space that is currently subdivided into a refrigerated storage section and conventional stacked storage space. The asset is fully leased to a single tenant, although they are no longer in occupation and their lease expires in 2020.
Greg Cooper joined Hines UK as Director of Industrial and Logistics this past July to spearhead the firm’s entry into this market. He said, “This off-market deal demonstrates our ability to source attractively priced, good quality and well-located assets in a very competitive market. The pending lease expiration presents us with a substantial opportunity to manage their exit while implementing a major program of refurbishment and releasing to execute a rental reversion. This classic value-add approach is a hallmark of Hines’ ethos to real estate, which we’re pleased to be now bringing to the Industrial and Logistics market in the UK.”
He continued, “As the largest city and most significant distribution hub in the South West region, Bristol is a particularly attractive location for our first acquisition, with a prominent gateway site to Cribbs Causeway and 85 percent of the UK population with a 4.5-hour drive time.”
Paul White, HEVF fund manager, remarked, “We are delighted to acquire HEVF’s first logistics asset in a key UK distribution hub. This acquisition demonstrates the Fund’s commitment to acquiring a diversified portfolio of high-quality value-add projects in the office, retail, logistics and residential sectors. Cribbs Causeway is an ideal example of the profile of logistics opportunity that HEVF will continue to pursue across its target markets.”
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 207 cities in 24 countries. Hines has approximately $116.4 billion of assets under management, including $64 billion for which Hines provides fiduciary investment management services, and $52.4 billion for which Hines provides third-party property-level services. The firm has 109 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1, 319 properties, totaling over 431 million square feet. The firm’s current property and asset management portfolio includes 527 properties, representing over 224 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information.
About Hines European Value Fund (HEVF)
HEVF is a Euro-denominated, Luxembourg-based investment fund launched in July 2017. Managed by Hines, its objective is to acquire a portfolio of core-plus and value add commercial real estate throughout Europe on behalf of an institutional investor group. In September this year Hines announced the final closing of HEVF, with the total fund size exceeding €720 million of equity commitments, surpassing its original target by more than 40 percent. As the flagship value add fund for Hines in Europe, HEVF has a geographic mandate across the European Union (plus Norway) and flexibility of scope to invest in office, retail, logistics, residential and mixed-use opportunities in primary institutional markets.