Oaktree Capital Management and Hines

Oaktree Capital Management and Hines

A Strong Investment Partnership

What are Oaktree’s principal goals?

Our goal is excellence in investing. To us, this means achieving attractive returns without commensurate risk. Although we strive for superior returns, our first priority is that our actions produce consistency, protection of capital, and superior performance in bad times. Adding value in our markets requires a "knowledge advantage" that can come only from proprietary, in-depth research. 

Ambrose Fisher, Managing Director, Oaktree Capital Management
Caption Ambrose Fisher, Managing Director, Oaktree Capital Management

As a firm, we operate according to a unifying investment philosophy, which has remained largely unchanged since Oaktree’s inception in 1995. The six tenets of this philosophy are: the primacy of risk control; emphasis on consistency; a focus on market inefficiency; the benefits of specialization; the belief that macro-forecasting is not critical to investing; and the disavowal of market timing. We have a strong track record of generating consistent, attractive risk-adjusted performance for our investors.

What asset classes are you involved in?

Oaktree invests across six asset classes: Real Estate; Corporate Debt; Convertible Securities; Distressed Debt; Control Investing; and Listed Equities. 

Why is Hines a good fit for Oaktree?

Hines possesses the entrepreneurial kind of flexibility and deep expertise that can provide truly innovative solutions to a full range of challenges. The company also has the financial stability, size and capabilities to handle projects of nearly any scope and complexity. Importantly, Hines has a global network of full-service offices staffed with experts who can help us navigate local markets with ease. That “knowledge advantage” in often inefficient markets can lead to potentially superior investment results. Their investment approach is highly complementary with our risk-controlled investment philosophy. Lastly, the professionals at Hines are among the most experienced in the business and truly a great group of people whom we enjoy working with. 

Hines maintains a global network of full-service offices staffed with experts who can help us navigate local markets with ease.

Ambrose Fisher

What have been some of your highest touch, value-add investments with Hines?

Two transactions come to mind: an office portfolio in Summerlin, NV and a mixed-use campus in Brea, CA. In mid-2012, at a low point in the Las Vegas real estate cycle we purchased a 32-building office portfolio in the prosperous Las Vegas suburb. Hines has created a great deal of value through targeted renovations, aggressive leasing and active property management. The now stabilized portfolio is being incrementally sold to a range of buyer types, including tenant-occupants and high-net-worth individuals.   

The second asset is a 30-acre, mixed-use campus in a vibrant Orange County city. Oaktree and Hines stood out in the bidding pool as we were comfortable with multiple types of office product, as well as the potential for hotel and residential development. While acquiring the campus, we navigated the challenging waters of purchasing the leasehold interest from a bank (which had foreclosed) and ultimately the fee land title from a local school district. We are approaching completion of the renovation and lease-up of the office product and also have achieved the entitlement of the residential and hotel components. 

What future strategy do you think shows the most promise?

In today’s market, we think it’s a good time to dial back risk.  We are focused on high income-oriented strategies in both equity and debt.  For us, this means traditional commercial assets (office, multifamily and industrial) with core-plus/value-add business plans.  Our primary focus is on high-growth non-major markets in the southwest and southeast United States where we believe assets can be purchased at much more attractive yields than in the major markets.  Hines has extensive experience in each of these markets, and we look forward to continuing our strong partnership. 

Contact Hines

Headquarters

Global Headquarters

2800 Post Oak Blvd.
Houston, TX 77056-6188
United States
713 621 8000
Contact Hines

European Headquarters

5 Welbeck St.
London W1G 9YQ
United Kingdom
44 20 7292 1900
44 20 7292 1901 fax

Regional Offices

U.S. East Region

345 Hudson Street
12th Floor
New York, NY 10014
United States
212 230 2300

U.S. Midwest Region

444 West Lake Street
Suite 2400
Chicago, IL 60606
United States
312 419 4900

U.S. Southeast Region

5 Ravinia Dr NE
Atlanta, GA 30346
United States
770 206 5300
770 206 5325 fax

U.S. Southwest Region

609 Main St.
Suite 4400
Houston, TX 77002
United States
713 237 5600

U.S. West Region

101 California Street
Suite 1000
San Francisco, CA 94111-5894
United States
415 982 6200
415 398 1442 fax

Asia Pacific Region

101 California Street
Suite 1000
San Francisco, CA 94111-5894
United States
415 982 6200
415 398 1442 fax

Eurasia Region

Gasheka Street 6
Ste. 820
Moscow 125047
Russia
7 495 785 05 00

European Region

5 Welbeck St.
London W1G 9YQ
United Kingdom
44 20 7292 1900
44 20 7292 1901 fax

International Offices

Australia

20 Hunter St
Level 11
Sydney, NSW 2000
Australia
61 2 9231 2167

Brazil

Av. das Nações Unidas, 12901
Torre Norte - 6 ° andar
São Paulo 04578-910
Brazil
55 11 5504 7600

Canada

200 King Street West
Suite 1805
Toronto, ON M5H 3T4
Canada
416 595 1949

China

Hyundai Motor Tower Suite 333
38 Xiaoyun Road, Chaoyang District
Beijing, PRC 100027
China
8610 8453 8855
8610 8453 9866 fax

France

66 Avenue Charles de Gaulle
Neuilly-sur-Seine, IDF 92522
France
33 1 41 45 80 80
33 1 41 45 80 81 fax

Germany

Hardenbergstraße 28a
D-10623 Berlin
Germany
49 30 726241 100
49 30 726241 109 fax

Greece

Voukourestiou 19
Athens 106 71
Greece
30 210 364 7895

India

One Horizon Center
12th Floor
Gurgaon, Haryana 122002
India
91 124 480 2222

Ireland

Block 2, First Floor
Clanwilliam House, Clanwilliam Place
Dublin 2
Ireland
353 1 7999900
353 1 7 999931 fax

Italy

Via Manzoni 5
Milan 20121
Italy
0039 02 8962921

Luxembourg

35 F, John F. Kennedy
Luxembourg L-1855

352 264 337 1
352 264 337 37 fax

Mexico

Torre del Angel
Reforma 350
Mexico D.F. 06600
Mexico
52 55 52428809

Panama

Torre B Piso 15
Torre de las Americas
Punta Pacifica, Panama City
Panama
507 028 20 7375
507 300 99 75 fax

Poland

Prosta Street 68
Warsaw 00-838
Poland
48 22 351 2400
48 22 351 2401 fax

Russia

Gasheka Street 6
Ste. 820
Moscow 125047
Russia
7 495 785 05 00
7 495 785 05 10 fax

Spain

Sor Ángela de la Cruz, 2° - 2° C
Edificio Cuzco III
Madrid 28020
Spain
34 91 703 00 23
34 91 359 89 71 fax

South Korea

Glass Tower, Level 20
534 Teheran-ro, Gangnam-gu
Seoul 06181
Republic of Korea
82 2 6138 3840

United Kingdom

5 Welbeck St.
London W1G 9YQ
United Kingdom
44 20 7292 1900
44 20 7292 1901 fax