Hines, the Texas-based real estate investment and development firm, is set to quaruple its logistics activities in Brazil over the next three years as part of its joint venture with the US pension fund, CalPERS.
The firm’s São Paulo office will actively acquire and develop logistics parks on major highway intersections in various Brazilian cities, boosting the number of parks being developed from five at present to almost 20 within three years. Hines has five logistics parks underway or completed in Louveira, Araucaria, Rio, Embu and Manaus.
The acquisitions will be funded through the Hines CalPERS Brazil Fund II (HCB II), a joint venture with the California Public Employees’ Retirement System (CalPERS), which targets Brazil’s office, industrial and residential markets. The fund has the option of extending to Argentina and Chile.
In February, news reports said Hines and CalPERS were set to create a third fund together targeting the Brazilian property market, with the JV set to debut in August this year.
Hines also said it had broken ground on two parks in the suburbs of Sao Paulo, the Louveira Swans Industrial Park and Cajamar Distribution Park, two speculative modular warehousing projects in Louveira.
Hines entered the Brazilian real estate market in 1998, developing more than 12 million square feet of office, industrial and residential space. Since being founded in 1991, the firm has sponsored 28 core, value-added and opportunistic investment vehicles with $15 billion in equity commitments.