Hines Announces Forward-Funding Agreement With McLaren for UK Student-Housing Portfolio on Behalf of German Pension Funds

Acquisition of six UK development sites from McLaren represents Hines’ entry into the student-housing market

(LONDON) – Hines, one of the world’s largest real estate investment managers, has launched its first move into the student-housing market globally with the acquisition of six prime development sites in the UK from McLaren Property, a leading UK developer.

A new investment vehicle owned by a group of German pension funds, and managed by Hines, has entered into the forward-funding agreement for the portfolio valued at approximately £150 million.

The portfolio comprises six development sites in Cambridge, Oxford, Kingston, Aberdeen and two locations in Brighton, and will deliver more than 1,100 beds in total. Planning consent to develop purpose-built student accommodation has been secured on four sites, with approval on the remaining two expected later this year. Construction work is expected to begin imminently, with the developments expected to complete in 2017 and 2018.

This is the first collaboration between the two companies, with Hines securing the forward funding and assuming asset management responsibility upon completion, and McLaren acting as developer.

The acquisition forms a key part of Hines’ current strategy of diversifying into new asset classes to build on its existing, established portfolio of office, retail, industrial and residential investments. The firm expects to further strengthen its student-housing platform, both in the UK and elsewhere, this year.

Alex Knapp, Hines Managing Director, said, “We have been waiting for the right opportunity to enter the student housing market. The combination of McLaren’s strong track record and the rare opportunity to secure a portfolio comprising assets in such prime locations make this a perfect entry for us into this exciting market sector. We look forward to working with McLaren to ensure the success of this cornerstone acquisition.”

Lars Huber, Co-CEO for Hines Europe, said, “The firm is embarking on a strategy of asset diversification across the UK and Europe, and we are delighted to make Hines’ first venture into student housing globally. The fundamentals of the UK market are very strong with growing student-population numbers driven by the strength and reputation of UK universities. We hope to further our presence in this burgeoning market, both in the UK and elsewhere, with further announcements expected soon.”

John Gatley, Managing Director for McLaren Property, said, “We are delighted to have established this relationship with Hines, and we hope to continue to develop further opportunities together. The student accommodation sector has performed exceptionally well, and we expect it to continue to do so. This transaction represents the latest tranche of our total development portfolio of circa 4,000 units, and we remain active in securing further developments and investment opportunities in this sector.”

McLaren were represented by Tudor Toone and Taylor Wessing in the transaction. Savills, Herbert Smith Freehills and Dechert acted for Hines.

Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 182 cities in 20 countries. Hines has $89.1 billion of assets under management, including $42.5 billion for which Hines provides fiduciary investment management services, and $46.6 billion for which Hines provides third-party property-level services. The firm has 109 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,126 properties, totaling over 351 million square feet. The firm’s current property and asset management portfolio includes 457 properties, representing over 193 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information.


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 10
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

Japan

Akasaka K Tower Level 4
1-2-7 Motoakasaka, Minato-ku
Tokyo 107-0051
Japan
81 90 9854 5236

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

The Netherlands

Naritaweg 165
Teleport
Amsterdam, NH 1043 BW
Netherlands
44 20 7292 1974

Nordic Countries

Nybrogade 12
Copenhagen 1203
Denmark
44 7815 285 191

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 2092 6500

United Kingdom

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