Hines Russia & Poland Fund Closes - Hines

Hines Russia & Poland Fund Closes

Capitalized With €390m of Equity for Over €900m of Total Leveraged Capacity

(HOUSTON) – Hines, the international real estate firm, announced the closing of the Hines Russia & Poland Fund (HRPF), a Luxembourg-based fund which has been formed to invest more than €900 million into Russian and Polish real estate investments. This is the fourth Hines fund with a strategy to invest in Russia and Poland. Equity has been committed to the fund from a diverse group of financial institutions, sovereign wealth funds, pensions, trusts and other institutional investors from Europe, Asia and the United States. Hines’ local platform teams in Russia and Poland led by country managers Lee Timmins and Mietek Godzisz, respectively, will execute and manage the investments on behalf of the fund, which will be managed by a dedicated Luxembourg fund team led by X. Simon Shen. The fund targets to invest approximately 80 percent of its capital in Russia and 20 percent in Poland. The opportunistic HRPF strategy will operate alongside the core acquisition strategies of Hines in both Russia and Poland.

Hines has been present in the Russian and Polish real estate markets since 1992 and 1996, respectively. In Russia and Poland combined, Hines manages over $2.0 billion of property assets, including $1.25 billion owned or controlled by Hines and its affiliates, as of 12/31/2011.

Jeff Hines, president and CEO, said, “Russia and Poland have long been markets where Hines has enjoyed competitive advantages and exceptional performance. In emerging markets that are undersupplied in all asset classes, the execution of Hines’ best practices by dedicated, local and long-tenured management teams results in a strict approach to risk management that is flexible for local conditions and ultimately delivers better performance for our investors.”

The fund has already allocated equity to three new projects in Russia in the retail property sector. These projects include outlet mall developments in St. Petersburg and Moscow, and a “big box” retail development in Moscow.

The outlet projects are the second and third such developments of Hines in Russia, providing valuable retail space to tenants that is in high demand. Together, these projects are the first such retail outlet developments in Russia, and ultimately will provide a further retail option to Russia’s enthusiastic consumers.

Timmins said, “In addition to our successful office developments, we are very excited about the development prospects in Russia in the retail, warehousing and residential property sectors, which take advantage of the growth of the Russian middle class and the rapidly growing consumer spending power.”

Godzisz added, “Poland remains a growing and vibrant economy in spite of European economic headwinds.

We continue to believe that very interesting opportunities for investment in the office, retail and mixed-use sectors are available in multiple cities throughout Poland.”

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. Hines is also a world leader in sustainable real estate strategies, with extensive experience in LEED®, ENERGY STAR®, BREEAM, Haute Qualité Environnementale and DGNB green building rating systems.

For further information on the Hines Russia & Poland Fund, please contact Hines Luxembourg or visit www.hines.com for more information.

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