Hines Global REIT Sells Five Properties in the United Kingdom
Hines Global REIT, a publicly registered non-traded real estate investment trust, sold five office buildings at Brindleyplace in Birmingham, UK for nearly $326 million (£260 million).
Hines Global REIT purchased Brindleyplace, its first international acquisition, in 2010 for $282.5 million (£186 million – assuming a rate of $1.52 per GBP based on the transaction date). The REIT owned a 60 percent interest through a joint venture with Moorfield, a UK-based real estate private equity investor and fund manager, which owned the remaining 40 percent.
Situated within the Brindleyplace mixed-use development, the five buildings total 560,000 square feet and are leased to Deutsche Bank, Royal Bank of Scotland, and Deloitte LLP.
“Brindleyplace has been a solid investment for Hines Global REIT. We made the purchase knowing there was value-add potential in a pending lease expiration, so we invested strategically and re-leased in short order to a well-known, high-quality tenant,” said Sherri Schugart, CEO of Hines Global REIT. “The project has performed well and we believe it was the right time to make this disposition and lock in gains for our investors.”
Hines Global REIT, which commenced its initial public offering in August 2009, raised $2.9 billion in investor equity in its two public offerings, the last of which closed in April 2014. The company’s multi billion portfolio is comprised of 40 properties located in the United States and abroad.
