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Hines fund secures US$400 million from Cadillac Fairview
New flagship vehicle seeks to build diversified real estate portfolio in Asia-Pacific
5 May 2021 | The Asset

Hines has launched a new flagship fund for the Asia-Pacific region with US$400 million capital from Cadillac Fairview, the real estate investment arm of Ontario Teachers’ Pension Plan.

Called Hines Asia Property Partners (HAPP), the fund is a multi-sector, open-ended, diversified vehicle targeting top-tier markets in Japan, Australia, South Korea, Singapore and China (including Hong Kong).

HAPP will invest in logistics, office, living, retail and select niche sectors to build a diversified portfolio targeting core plus returns and balancing yield and growth. By focusing on next-generation assets designed for future tenant demand, the fund will aim to capitalize on an attractive pricing environment and fundamental market shifts by leveraging Hines’ operating platform to create value at the asset level through active management and select development.

“We are very pleased to partner with such a prominent like-minded institutional investor like Cadillac Fairview to launch our flagship fund in Asia. We look forward to creating value for our current and future investors, project partners, and communities through the fund’s investments,” says David Steinbach, Hines global chief investment officer. “Our long-established teams in the region have already started to identify and secure opportunities that are emerging post-Covid across Asia-Pacific.”

Duncan Osborne, executive vice president of investments at Cadillac Fairview, adds: “We are delighted to invest in Hines Asia Property Partners as a lead founding investor, and we believe that Asia will accelerate growth and diversification benefits to our portfolio with potential long-term outperformance. Our relationship with Hines dates back two decades and they have a proven track record as a trusted manager and operator with demonstrated history of successfully executing investments through their local market teams.”

Hines entered the region in 1996. Since then, the real estate investor and manager has expanded across 13 cities in Australia, China (including Hong Kong), India, Japan, South Korea and Singapore, with US$5.3 billion of assets under management.