Hines, the international real estate firm, announced today the commencement of the initial public offering of Hines Global REIT, a public non-traded real estate investment trust. The company seeks to raise a maximum of US $3.5 billion in the offering.
Shares of Hines Global REIT will be sold through a network of broker dealers and financial advisors across the United States. Hines is the sponsor of Hines Global REIT, and as its advisor will be responsible for executing its real estate strategies and managing its day-to-day operations. Hines Global REIT contemplates investing in a diversified portfolio of quality commercial real estate properties and other real estate equity and debt investments, including office, retail, industrial and multi-family in both the US and internationally.
In addition to attempting to capitalize on current distress in the market to acquire attractive properties at historically low prices, Hines Global REIT will seek to make tactical investments that may offer value-add potential, and time acquisitions and dispositions for maximum benefit to investors. One of the goals of Hines Global REIT is to generate an attractive total return for investors over an expected hold period of approximately eight to 10 years.
Hines President and CEO Jeffrey C. Hines commented, "Our firm has relied on solid investor relationships for more than half a century. We look forward to making this new investment product work for advisors and investors seeking diversification through real estate. We think Hines Global REIT will benefit from the expertise of our many offices and tenured employees in 17 countries on four continents."
Charles Hazen, president of Hines Global REIT, said, "In this challenging market, we see many opportunities on the horizon. We plan to make strategic acquisitions and dispositions, and will be seeking out undervalued assets as well as aggressively pursuing opportunities in markets around the world, which may offer additional diversification as well as attractive risk-adjusted returns. With Hines as our sponsor, we will have the advantage of tenure and expertise in developed markets, as well as in emerging markets such as Brazil, China, Russia, Poland and India."
Hines' first non-traded public REIT, Hines Real Estate Investment Trust, Inc., was established in 2004. Now in its third offering period, Hines Real Estate Investment Trust, Inc. has raised approximately $2.4 billion since its inception.