Hillwood Expands into Canada, Europe
- Oct 16, 2014
By Adriana Pop, Associate Editor
Hillwood, a Dallas-based Perot property company, is entering the Canadian real estate market, with plans to build the largest speculative industrial development in Alberta.
The company has partnered with local land developer Highfield Investment Group (HIG) to construct the massive 500,000-square-foot facility, which will be located within the High Plains Industrial Park near Calgary.
“We chose this market for a substantial long-term investment based on our view that Calgary is the distribution hub for western Canada with growth potential,” said Ross Perot, Jr., chairman of Hillwood and son of the former presidential candidate and well-known American businessman. “Hillwood looks forward to partnering with a strong development company like HIG to deliver a high-quality industrial space for top tenants across the region.”
According to Adrian Munro, chief executive of HIG, the area’s proximity to infrastructure is one of the main advantages of the High Plains Industrial Park, which is already home to a 1.3-million-square-foot Target facility and will soon host a 290,000-square-foot Gordon Food Service building, currently under construction.
Furthermore, when compared with the City of Calgary, Rocky View County provides a tax advantage for companies, which translates into annual savings of approximately $1.00 per square foot.
“When we set out with High Plains a few years ago, our vision was to create a niche product – a product that would fill price point to marketplace. We set out to keep our prices below $500,000 per acre to the end-user and as a result we’ve seen significant traffic because of the price point to market,” Munro told the Calgary Herald.
The Calgary office of Colliers International is the listing agent for large-scale transactions at High Plains, including the Hillwood project.
In a separate announcement, Hillwood also unveiled its plans to enter the European logistics real estate market with €1 billion worth of investments over the next three to four years.
The company’s new division, Hillwood Europe, will make direct and indirect investments in logistics real estate across major markets in Central and Western Europe through acquisitions, developments and joint ventures with other developers.
“Hillwood is very excited to enter the logistics real estate market in Europe. Unlike most investors recently interested in Europe, this is a long-term commitment based on building our business through acquisitions and development. We are comfortable doing this one building at a time,” added Perot.
Hillwood Europe’s new offices are located in Warsaw, Poland and Frankfurt, Germany.
Hubert Michalak, senior vice president, will lead the company’s business in Poland, while Peter Schuijlenburg, senior vice president will handle Hillwood’s operations in Germany.
Hillwood is one of the world’s premier commercial real estate developers, investors and advisors of high-quality real estate properties that provide a significant economic impact to their region. The company is also the second largest owner of land for future development of more than 87 million square feet of logistics space in the U.S. It is best known for its Alliance brand that includes the 18,000-acre AllianceTexas, 4,474-acre AllianceFlorida at Cecil Commerce Center, and 2,000-acre AllianceCalifornia (pictured).