The UK office of Hines, the international real estate firm, announced that Hines Global REIT and Moorfield, the UK real estate private equity investor and fund manager, have concluded negotiations for the acquisition of properties at Brindleyplace in Birmingham, England, from The Brindleyplace Limited Partnership.
The properties consist of five prime office buildings including ground-floor retail, restaurant and theatre space, and a 903-space multi-story car park. The deal is expected to be completed by mid July. The properties are currently managed by Argent, which will retain an asset management role working alongside Hines.
Gary Taylor, joint managing director of Argent (UK Developments) said, "We have been involved with Brindleyplace for the past 17 years, and during this time the estate has matured into probably the best mixed-use environment anywhere in the UK. We are delighted that the majority of the estate is staying in one ownership, and that two such outstanding organizations as Hines and Moorfield share the same customer-focused, long-term management ethos that we have adopted since the early 1990s. We look forward to working with them."
"This asset was extremely attractive to the Hines Global REIT due to its prominent position in the market and its strong and stable tenancy," said Charles Hazen, president and CEO of Hines Global REIT. "As one of the top mixed-use properties in the UK, we believe this acquisition reinforces our strategy of investing in fundamentally sound real estate across the globe."
Commenting on the deal, Stephen Musgrave, managing director of Hines UK said, "This is a significant move for Hines and Moorfield. Brindleyplace is an extremely strong asset, which we will continue to shepherd carefully applying Hines' investment, development and property management skills, complemented by Moorfield's skill base, to build on the tremendous work Argent has already done to add value to this important area of Birmingham's city centre. It's been great working with Jay Wyper, Ross Blair and the rest of the Hines team and Moorfield on this deal."
Moorfield will invest on behalf of the Moorfield Real Estate Fund II (MREF II), a geared fund which raised approximately £400 million of private equity on closing at the end of 2007.
Marc Gilbard, chief executive of Moorfield said, "We have known both Hines and Argent for many years, and have looked at opportunities in the past where we might be able to work together. This acquisition will enable all three of us to come together from an asset management perspective, and I believe our complementary skill base will ensure that all parties, including Brindleyplace tenants, will benefit going forward."