Hines, a global real estate firm and sponsor of non-traded alternative investments, has launched HGM, a new investment program with an institutional investor that will develop logistics buildings and industrial parks in the major population centers across Mexico.
It is our understanding that the unnamed investor is GIC, a sovereign wealth fund established in 1981 to manage Singapore’s foreign reserves.
The venture has secured an initial capitalization of $300 million with capacity to invest up to $900 million for the acquisition of greenfield sites across Mexico and the development of industrial and logistics assets.
“With the launch of HGM, Hines can build on the international Class A standards of our industrial and logistics projects across Mexico and attract some of the most prominent and respected international tenants, who prioritize the access, functionality and productivity associated with operating at a Hines business park…,” said Palmer Letzerich, senior managing director.
HGM has two development projects underway in Mexico City and Tijuana. The first is a 250-acre site in northern Mexico City, where Hines will develop a 2.7 million-square-foot business park offering a variety of building configurations and land for sale to end-users. The second is Tijuana Technology Park, an 80-acre site in Tijuana where Hines is developing a 780,000-square-foot light industrial park.
With these two projects, Hines said that it is “building on the recent successes” of its completed developments in Mexico, including Parque Industrial Tecnológico IV, a 1.5 million-square-foot multi-tenant light industrial park in Guadalajara; and Convento City Park, a 1.8 million-square-foot multi-tenant logistics park in Mexico City.
HGM has additional capacity to invest and is seeking urban infill sites for last mile distribution and larger suburban sites for the development of large distribution centers to add to the portfolio of options within this growing region.
Rodrigo Peredo, managing director at Hines stated, “This new venture gives Hines the flexibility to not only develop the large scale, multi-building industrial parks that Hines is known for but also to selectively pursue smaller, standalone infill developments inside the urban core…”
Hines is a privately owned global real estate investment firm that oversees investment assets under management totaling approximately $90.3 billion.