Hines, the international real estate firm, and the California Public Employees' Retirement System (CalPERS), have announced the formation of HCS Interests LP. This new fund dedicated to the Spanish residential market, chiefly on the Mediterranean coast is capitalized with €183 million ($231 million). The fund has a 10-year life and has set a target of three years for initial investment.
Edouard Fernández, a general manager with Hines Spain, said: "This partnership represents our long-term commitment and confidence in Spain's residential market. There are enormous opportunities in the second and vacation home property market for both national residents and foreigners. Spain has excellent weather, cultural and economical conditions, and superior infrastructure development." Fernández added, "Since Hines' beginning in 1957, the firm has distinguished itself through innovative architecture, quality buildings and respect for the environment. We plan to build on our reputation through our work in the Spanish residential market."
Carlo Matta, fund manager for HCS, said: "CalPERS' commitment to this fund demonstrates its confidence in Hines, as well as in the potential of the Spanish market. We believe that this union will lay the foundation for a new real estate patron in the country."
CalPERS and Hines are currently associated in several other joint funds including: National Office Partners LP (invests in the United States); HCB Holdings LP (invests in Brazil); and HCM Holdings LP (invests in Mexico).