Hines and the California Public Employees' Retirement System (CalPERS), announced an agreement that closes a second $100 million fund to invest in the Mexican real estate market.
The fund, named HCM Holdings II LP, will have an eight-year term and $300 million of capacity, including leverage, with discretion to invest in the development and acquisition of residential, retail, office and industrial properties, among other product types.
Hines Vice President and fund manager Gary Holtzer said: "The first Hines CalPERS Mexico fund has been committed in outstanding developments in a variety of property types. Each has been well received by its market. We are enthusiastic about continued opportunities for our joint venture with CalPERS in Mexico.
Pierre Arriz, general manager of Hines Mexico, added: "With more than 30 years of experience in Mexico, our local teams have cultivated the expertise and relationships to capitalize on the best opportunities as they arise. We are strategically positioned in growing markets throughout the country."
Created in January of 2005, HCM Holdings I LP has sponsored 14 development projects, including: three neighborhood shopping centers with a combined gross rentable area of 46,000 m² four for-sale, multi-family housing developments, including 600 residences; four single-family home communities, including more than 1,000 units, in a joint venture with Brasa Desarrollos; and three industrial projects, including 65,000 m².
Hines entered the Mexican real estate market in 1975. Since that time, the firm has completed office, residential and industrial properties in Mexico totaling more than 5.6 million ft² and has developed more than 700 acres of land. Currently, the company has operations in markets including Acapulco, Ciudad Juarez, Guadalajara, Hermosillo, Irapuato, Los Cabos, Merida, Mexico City, Michoacán, Monterrey, Querétaro, Reynosa, San Luis Potosí and Toluca.