Hines, BVK to Invest $1.4B in Prime Retail Assets Across Europe

Houston-based Hines has partnered with Germany's largest public pension fund, BVK, to invest in high-street retail assets across Europe.

By Ioana Neamt, Associate Editor

Karl Johans Gate 45
Karl Johans Gate 45

Oslo, NorwayHines is partnering with Germany’s largest public pension fund to invest in high-street prime retail assets across 20 European countries.

The Houston-based company has been selected by Bayerische Versorgungskammer (BVK) to execute a €1.3 billion ($1.4 billion) separate account program targeting prime retail assets across Europe.

Working on behalf of BVK, Hines will focus on identifying, acquiring and managing core-plus, value-add and redevelopment opportunities in major markets across Europe, with the majority of investments intended for a long-term hold.

“The combination of strong fundamentals for the European prime high-street retail sector, Hines research-based approach to identify the most attractive markets and high streets, as well as being able to source and execute core-plus, value-add and development opportunities with our local teams around Europe are the basis for a successful execution of BVK’s long-term investment strategy,” said Peter Epping, managing director for Hines Europe and manager of the account.

Hines acquired the first retail property at the end of 2015, secured as a sale and leaseback from Landkreditt Bank for €52 million ($56.2 million). The property, Karl Johans Gate 45, is a 54,895-square-foot historic building located on the main street in Oslo. The area is one of the most sought after shopping destinations in the country and is home to some of Oslo’s main attractions, such as: Royal Palace, Central Station, the National Theatre, the old University Buildings, the Palace Park and the Bazaar Market.

Over the last couple of years, Hines has debuted a series of separate accounts and one-off transactions with German pension funds, and has managed to secure more than €1.5 billion ($1.62 billion) of equity commitments.