US-headquartered real estate investment firm Hines has launched a flagship fund for the Asia-Pacific Region, Hines Asia Property Partners (HAPP), with a $400 million investment from Cadillac Fairview, the real estate investment arm of Canada’s largest single pension scheme Ontario Teachers’ Pension Plan.
Cadillac Fairview is the lead founding investor in the fund, according to a statement released on Tuesday. The transaction probably marks its first capital deployment in the region.
HAPP will be a multi-sector, open-ended, diversified vehicle targeting top-tier markets in Japan, Australia, South Korea, Singapore, and Greater China. The fund will invest in logistics, office, living, retail, and select niche sectors targeting core plus returns.
“We believe that Asia will accelerate growth and diversification benefits to our portfolio with potential long-term outperformance,” said Duncan Osborne, executive vice president of investments at Cadillac Fairview.
Hines, which entered APAC in 1996 with a presence in China, has expanded throughout 13 cities across Australia, Greater China, India, Japan, South Korea, and Singapore, with $5.3 billion of assets under management. The firm has acquired or developed 17 projects totaling 14 million square feet.
In January this year, Hines roped in Chiang Ling Ng from M&G Asia as its chief investment officer for the Asia market. A month later, Hines appointed a director in its Seoul office, and an associate based in Tokyo.
The firm’s investments in the region include the One Horizon Centre commercial building and office projects in Gurugram and Bengaluru, India.
Meanwhile, the C$221 billion ($179.4 billion) Ontario Teachers’ Pension Plan opened its Singapore office in September last year to accelerate investments in India, Australia, New Zealand, and Southeast Asia. The pension fund’s APAC headquarters is located in Hong Kong, which was set up in 2013.
Cadillac Fairview manages over C$36 billion of assets across the Americas and the United Kingdom.