Hines Top Banner 780x350

Hines is a global real estate investment, development and management firm, founded in 1957, with a presence in 225 cities in 25 countries and €128.6bn of assets under management – including €67.4bn for which Hines serves as investment manager and €61.2bn for which Hines provides third-party property management services.

Hines remains a privately owned company with exceptionally strong values and integrity and one that carefully guards its clients’ reputation as much as its own. This ownership structure allows Hines to take a long-term view and pursue strategies that help the company weather real estate cycles.

Hines’ portfolio of existing projects, completed and acquired, includes more than 1,591 properties representing 49.8m sqm of office, living/ housing, mixed-use, industrial/logistics, hospitality, medical and sports facilities, as well as large master-planned communities and land developments. In addition, Hines’ property management portfolio includes 576 properties totalling 22.9m sqm of prime real estate. The firm has approximately 4,820 employees, most often locals in their specific investment market, executing the different activities of Hines globally.

With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most respected real estate organisations in the world.

Please visit www.hines.com for more information.

Source: Hines, 30 June 2020

Sector forecasts

INDUSTRIAL: The sector is benefiting from an accelerated shift to online retailing, somewhat offsetting short-term cyclical challenges for now. Although evidence of re-pricing is scarce so far, a modest price correction in the near term could occur as economic conditions deteriorate. However, Hines anticipates a robust recovery leading to strong five-year price trajectories in many markets. With COVID -19-induced online acceleration a major demand tailwind for logistics, particularly for the urban segment, outsized rent growth is now anticipated. The gateway cities of London and Paris, regional UK and French cities and parts of the Nordics, Germany, and the Benelux all stand to benefit from accelerated rent growth in this new normal with Central and Southern Europe catching up in time.

OFFICE: Hines expects office values to decline in the short term, with most markets becoming fair value to cheap over the coming 12–18 months. Markets will not recover at the same pace or by the same magnitude. London is a market where relative pricing already looked attractive prior to COVID-19. A robust recovery is also expected in Berlin and Paris as well as Dublin and Warsaw. However, there is now substantial uncertainty surrounding the medium and long-term impact on office demand from the work from home trend, a growing risk which investors must consider when making a foray into office investments at this current juncture.

RESIDENTIAL: The residential sector is so far proving its defensive credentials. Rent collection rates are amongst the highest across sectors while investment volumes continue to track higher. Additionally, surveys of investor preferences show the sector to be at the top of the wish list for many, with residential primed for continued investment flows going forward. Investors ought to focus on markets with strong renter cohort and household formation growth dynamics, chronic undersupply, solid price growth prospects and a benign regulatory environment. Markets such as Stockholm and Copenhagen, key Nordic cities with robust population fundamentals, stand atop on this measure, followed by markets such as London, Milan, Munich, and Madrid.

RETAIL: The retail sector not only has to contend with the prolongation and now acceleration of online retailing that has negatively impacted physical retail but also the lost revenue from forced lockdowns combined with a bleak outlook for consumer and retail spending. Store closures are increasing across Europe, contributing to rising vacancy while rent decline is now truly visible. With these factors considered, the sector is poised to see the largest comparative value decline. While underweight today, in time, re-pricing may generate select opportunities albeit investors must tread carefully, maintaining a disciplined focus on core markets such as London, Paris and Milan.

Investment principles & strategy

Hines’ philosophy is to focus on high-quality properties and maximise value through the firm’s vertically integrated platform. Hines believes that the highest quality properties, both in terms of physical characteristics and location, are generally able to outperform their respective markets. Hines believes that this approach translates into more consistent investment performance for investors over the long term, while mitigating short-term downside risks and potential gaps in rental income.

Hines’ local market knowledge, when coupled with its central resources, investment management and proprietary research, creates a marked difference between Hines and its competitors. This vertical integration and deep understanding of real estate both from an investor’s point of view and as a world-class operator is the hallmark of Hines. This investment philosophy has been developed and refined over 60 years of experience and applies to all mandates and all real estate sectors.

Investment ideas are generated by bringing together the top-down guidance from the firm’s Proprietary Research Group, strategy and investment management teams together with the expertise and concrete investment opportunities that the local Hines teams originate.

Hines believes that the integration of these critical real estate investment functions within one organisation provides a competitive advantage that will directly benefit the investment.

Strategic corporate development

Hines takes a holistic approach to real estate investing that creates an advantage for investors. Sophisticated trend analysis, deep local market knowledge, and hands-on operational expertise allow Hines to swiftly capitalise on opportunities as it seeks to optimise every aspect of real estate to maximise value. With the rapidly changing market environments within each real estate sector and regions, Hines is able to leverage its presence in 225 cities and 25 countries to gather real time local data for their proprietary research and strategy teams to identify opportunities across the risk spectrum and serve the investors.

With over 60 years of real estate experience, Hines continually seeks strategic ways to grow the business. Through strong partnerships with valued clients, Hines continues to foster organic growth while meeting the needs of investors. Hines offers a variety of real estate products across the risk spectrum and throughout worldwide geographies to provide solutions to investors. Over the next year, Hines will continue to expand its core flagship funds in North America, Europe and Asia Pacific. Hines will also continue to partner with investors on deveIoping strategic opportunities which include student housing, last mile logistics, ESG and various other strategies. 

COMPLIANCE STATEMENT

All information is as at 30 June 2020 and sourced to Hines Interests Limited Partnership.

This profile is for informational purposes only and is intended solely for the use of professional and other qualified investors and is not for general public distribution. The information contained herein was up to date at the time of producing and is subject to change. This information does not constitute an offer to subscribe for securities, units or other participation rights. It is not intended to be a recommendation or investment advice. This document is not directed at or intended for any person (or entity) who is citizen or resident of (or located or established in) any jurisdiction where its use would be contrary to applicable law or regulation or would subject the issuing companies or products to any registration or licensing requirements. In the US, distributed or placed by Hines Securities, Inc, a registered broker-dealer with the Securities & Exchange Commission, and a member of FINRA. In the UK and European Union, issued by Hines Europe Real Estate Investments Ltd (HEREI), which is authorized and regulated by the Financial Conduct Authority. In the Dubai International Financial Centre UK, distributed by HEREI Representative Office Regulated by the Dubai Financial Services Authority as a Representative Office.