HAIL and Hines Acquire Broadgate West

(LONDON) – A joint venture, formed by HSBC Alternative Investments Limited (HAIL) and Hines, the international real estate firm, has acquired the Broadgate West office complex located in London EC2, for an undisclosed amount. This is the first joint venture between HAIL and Hines.

The seller was a private property company owned by Peter Marano and Michael Dennis.

The buyer was advised by Linklaters, KPMG and Colliers in the transaction and obtained debt from MetLife.

The seller was advised by Clifford Chance, PWC and CBRE.

The 457,000-square-foot development is situated on the northern edge of the Broadgate estate in the heart of the City.

Broadgate West incorporates two phases – Phase I was designed by Gensler, contains 243,000 square feet, 10 stories and was completed in 2000. Phase II was designed by SOM, contains 214,000 square feet, 12 stories and was completed in 2003.

Both buildings are fully leased to tenants including: Ashurst; GFI; Shearman & Sterling; and UBS.

“We are delighted to have closed this acquisition in Hines’ first joint venture with HAIL, and we look forward to working together on these exciting buildings.

We are strong believers in the City office market, and Broadgate West’s impressive tenant roster is testament to the quality of the asset.

There are some additional high-profile restaurants due to open in the building soon, and these will further enhance the appeal of this micro location,” said Ross Blair, managing director of Hines UK.

Paul Forshaw, head of Real Estate Fund Management, HSBC Alternative Investments Limited, said: “Since founding the HSBC Club Programme, we have been able to provide HSBC clients with direct exposure to otherwise inaccessible real estate opportunities globally; the strong take up from investors is certainly testament to the quality of the assets we have acquired.

The acquisition of Broadgate West in joint venture with Hines fits our strategy of investing in high-quality office buildings with credit-worthy tenants alongside strong local asset management partners.”

“It was a pleasure to do business with a buyer that performed on the deal we shook hands on,” said seller Peter Marano.

"We have greatly enjoyed developing two of the best multi-let buildings in the centre of London, as well as building good relationships with the tenants.

We are particularly proud of bringing excellent restaurants to the city, and of our partnership with the borough of Hackney in promoting regeneration.

We look forward to continuing that relationship in developing our retained site in due course,” said seller Michael Dennis.

Hines UK is acting on more than two million square feet of projects with a total value in excess of £1.2billion.

The company’s growing London portfolio of assets under management includes: city offices Cannon Place and 1 Bartholomew Lane; Mayfair’s One Grafton Street; and Midtown’s 280 High Holborn and Stonecutter Court.

Outside the capital, Hines UK is asset manager at Brindleyplace in Birmingham, and is developing Two Snowhill in Birmingham on behalf of the Hines European Development Fund II.


About Hines

Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide. The firm’s historical and current portfolio of projects that are underway, completed, acquired and managed for third parties includes 1,192 properties representing more than 482 million square feet of office, residential, mixed-use, industrial, hotel, medical and sports facilities, as well as large, master-planned communities and land developments.

With offices in 110 cities in 18 countries, and controlled assets valued at approximately $22.9 billion, Hines is one of the largest real estate organizations in the world. Visit www.hines.com for more information.

About HSBC Alternative Investments Limited (HAIL)

The HSBC Alternative Investment Group, of which HSBC Alternative Investments Limited (HAIL) is its UK regulated entity, began advising clients on alternative investments in 1989 and currently manages or advises on US$35.5Bn

across funds of hedge funds, customised alternative asset portfolios, private equity funds and real estate funds. As at December 2011, HAIL was ranked one of the largest hedge fund investors worldwide by Investhedge Billion Dollar survey.

Source: HSBC Alternative Investments Limited as at 31 December 2011