Hines has been chosen by Bayerische Versorgungskammer (BVK) to execute a €1.3bn separate account programme targeting prime high street retail assets across Europe.
BVK, Germany’s largest pension scheme group with approximately €62bn assets under management, has awarded Hines the mandate to focus on identifying, acquiring and managing core-plus, value add and re-/development retail assets in prime locations on high streets in major markets across 20 countries in Europe. The majority of investments are intended for a long-term hold.
Hines will be pursuing a range of value-added measures including rental reviews, repositioning and re-leasing of units, store reconfiguration and light refurbishments. In addition, major redevelopments, including conversions, and ground-up developments will be part of the investment strategy.
Hines has already acquired the first asset at the end of last year, with the purchase of an iconic building on Oslo’s Karl Johans gate, the premier high street and one of the most sought after retail precincts in Norway. The 5,100m² building has been secured as a sale and leaseback from Landkreditt Bank for €52m.
Over the last two years, Hines has launched a series of separate accounts and one-off transactions with German pension funds, securing over €1.5bn of equity commitments.
Norman Fackelmann, department head of real estate investment management at BVK, said: “As a business we are committed to growing our exposure to the high street retail market. It is a sector which offers attractive fundamentals, and there are good opportunities to source value add assets in strategic locations for long-term investing. Hines represents the perfect fit for executing this strategy given the strong track record in asset level value creation across a broad range of markets.”
Lars Huber, co-CEO for Hines Europe, said: “This is a significant mandate for our European business from one of the world’s leading investors in real estate. It enables us to capitalize on our integrated business model and leverage our pan European platform to focus on value creation through active asset management, refurbishments and redevelopment. As a business, Hines continues to evolve and diversify, and this instruction from BVK demonstrates our capabilities and strengths in the retail sector. We are delighted to have been awarded such a prestigious and significant mandate, and we look forward to building the portfolio for the client.”
Peter Epping, managing director for Hines Europe and manager of the account, added: “The combination of our research-based investment approach with the strong presence of our local teams across the continent with expertise in executing core-plus, value-add and development investments position us well for delivering BVK’s investment strategy.”
Leading the first acquisition for this account in Oslo, James Robson, managing director, Hines Europe, said: “Securing the first asset, particularly outside our established continental platform, is testimony to our market reach and the speed at which we operate. The building in Oslo is typical of the kind we are targeting; a well located, retail anchored asset offering both income and importantly, the opportunity to use our real estate expertise to deliver enhanced capital value to the investor.”
