Hines Property Fund

Location:

Regional

Project number:

40709

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

FI

Target board date:

09 Mar 2010

Status:

Signed

PSD disclosed:

26 Jun 2012

Project Description

The EBRD has signed an equity investment amounting to the lower of
(i) EUR 100 million or
(ii) 30% of total capital commitments of Hines Russia & Poland Fund (the “Fund”), a closed-end investment fund established as a Luxembourg fonds commun de placement.

The Fund’s objective is to seek long-term capital appreciation through investments in institutional quality developments, re-developments, and income-producing real estate projects. The target investments of the Fund will be in office, residential, logistic/warehouses, retail and mixed-use projects in Russia and Poland (the “Region”). The Fund will also target distressed opportunities as they arise on the market.

Transition Impact

The Project’s transition impact will stem from the following:

  • Increasing competition and expanding private real estate equity markets, especially by supporting investments in regional cities and providing liquidity to the Region which should encourage participation of institutional equity investors in these markets and stimulate competition in the economy.
  • Demonstration effect: The role of EBRD as an anchor investor was important in encouraging other investors to participate in the Fund. The successful closing of the Fund is expected to have a positive demonstration effect on other equity investors in emerging markets, by building broader confidence among potential investors to invest in Russia and Poland real estate.
  • Setting standards. Hines is a global leader in sustainable property development and the Fund is therefore expected to introduce to the Region improved environmental standards and especially energy efficiency measures.

The Client

The Fund is managed by Hines R & P Management Company S.à r. l. (the “Management Company”), a limited liability company organized under the laws of Luxembourg.

Hines is a reputable international real estate firm established in 1957. Currently, the firm has a presence in more than 100 cities around the globe and it controls assets valued at approximately USD 22.9 billion.

EBRD Finance

The lower of (i) EUR 100 million equity or (ii) 30% of total Fund capital commitments.

Project Cost

The size of the Fund is about EUR 390 million.

Environmental Impact

The project was categorised “Financial Intermediary (FI)”- provision of financing via a financial intermediary in accordance with the 2008 Environmental and Social Policy and Performance Requirements (706KB - PDF) (PRs)

Due diligence confirmed that the Fund management has adequate environmental and social risk management capacities to comply with PR2 and 9 for the upcoming operation. The Fund should ensure each sub-project, at a minimum, complies with national environmental, health and safety and labour laws and, in EU member countries, EU standards. The Fund will be required to adhere to the EBRD's Environmental and Social Exclusion and Referral lists, and submit annual environmental and social reports to the Bank.

Technical Cooperation

None.

Company Contact

X. Simon Shen
Senior Managing Director

Tel: +1 713 966 2628
Email: Simon.Shen@hines.com

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.