Hines Forms "Green" Fund With CalPERS
First in U.S. to Target Solely Sustainable Development; Seventh Joint Venture Between Hines and CalPERS
(HOUSTON) – Hines, the international real estate firm, announced today the closing of the Hines CalPERS Green Development Fund (HCG), capitalized with more than $120 million of committed equity and with leverage will have the ability to invest up to $500 million. HCG will concentrate on developing high performance, sustainable office buildings certifiable through the Leadership in Energy and Environmental Design Core and Shell Program (LEED-CS). The fund will focus on developing office projects throughout the United States.
The fund has already deployed capital to take controlling interest its first project, Tower 333 in Bellevue, WA. Completion for this Hines-developed 20-story, 410,000-square-foot office project is expected in the fourth quarter of 2007.
Hines President Jeff Hines, said, “The formation of this fund represents several significant events. First, the largest pension fund in the nation has acknowledged the importance and economic viability of sustainable building, which is a monumental step for the industry. Second, it is notable that CalPERS has selected Hines to create the nation’s first ‘green’ fund, based on our experience in sustainable development as recognized by the USGBC and the EPA. Third, it represents the continuation of a long, successful joint venture relationship between Hines and CalPERS.”
Hines Senior Vice President and fund manager Dan Rashin, added, “We have long tried to persuade tenants that there are significant bottom-line benefits to sustainable development and build out. Fortunately, the green movement is gaining steam as the public become more conscious of its benefits. The real estate industry is finally ready for green.”
Hines and CalPERS share five other joint ventures, including chronologically: National Office Partners, LP; Hines CalPERS Mexico Holdings, LP; Hines CalPERS Brazil Interests, LP; Hines CalPERS Spain Interests, LP; and Hines CalPERS China Interests, LP.
"CalPERS couldn't be more pleased about this venture with Hines," said Russell Read, the pension fund's Chief Investment Officer. "First, we have great confidence in Hines, based on many years of investments that have given ussubstantial returns. Second,we are fully committed to developingsustainable, high performance office projects to reduce our reliance on diminishing natural resources. Investing in buildings that conserve these resources perfectly complements our search for alternative energy sources."
Hines has established itself as a leader in sustainable development around the globe. 1180 Peachtree in Atlanta, which Hines developed with CalPERS through National Office Partners, was the first LEED-CS Silver pre-certified office project in the world – now it is Gold certified. It was followed by One South Dearborn, the first LEED-CS Silver pre-certified project in Illinois, which is now Silver certified. Tower 333 is the nation’s first LEED-CS pre-certified office project on the West Coast and Hines’ 2211 Michelson Office Tower in Irvine is the first LEED-CS pre-certified project in California. In addition, Hines has five projects registered with the LEED Existing Buildings pilot program. The firm was also recognized by the Environmental Protection Agency’s ENERGY STAR program as “Partner of the Year” from 2001-2003 and received the “Sustained Excellence Award” in 2004.
CalPERS is the nation’s largest public pension fund with assets totaling more than $210 billion. The System provides retirement and health benefits to more than 1.4 million State and local public employees, retirees, and their families. For more information, visit www.calpers.ca.gov.
Hines is a privately owned, international real estate firm involved in real estate investment, development and property management. Since 1991 the firm has established 21 funds consisting of more than $10 billion of equity committed by a variety of institutional investors. The Hines portfolio of projects underway, completed, acquired or managed for third parties includes almost 900 properties representing more than 345 million square feet of office, residential, mixed-use, industrial, hotel, medical, retail and sports facilities, as well as large, master-planned communities and land developments. With offices in 68 U.S. cities and 14 foreign countries, and controlled assets valued at approximately $12.5 billion, Hines is one of the largest private real estate organizations in the world. Visit www.hines.com for more information.