Hines, CalPERS Eye More Brazilian Real Estate

Houston-based developer Hines and the California Public Employees’ Retirement System (CalPERS) are reportedly preparing to create a third fund for investment in Brazilian real estate. All together, the fund could total $800 million. News of the new fund was reported by Bloomberg, quoting Douglas Munro, chief executive of Hines do Brasil Empreendimentos. This morning a representative of Hines confirmed to CPN that the report was accurate, but otherwise declined to comment on the fund, which may be ready by August. Representatives of CalPERS could not be reached for comment. Hines is an experienced player in the Brazilian real estate market, entering in 1998. Since then the privately held company has developed more than 11 million square feet of office, industrial and residential space in the country, and currently manages about 9.5 million square feet there. Hines has operations in six markets in Brazil, including São Paulo, Louveira and Embú (suburban São Paulo), Rio de Janeiro, Curitiba and Campinas. Hines and CalPERS have previously formed two other funds for Brazilian real estate investment. Last summer, a joint venture between Hines CalPERS Brazil II (HCB II) fund–the second fund–and Hines Real Estate Investment Trust Inc. bought Cargo Center Dutra II, a four-building distribution facility in suburban Rio de Janeiro. Also last summer, Hines, acting on behalf of the second fund, acquired the BankBoston office building located in the Marginal Pinheiros submarket of São Paulo.