Real estate giant Hines is offering up its wares to Canadian investors with its launch of an initiative to allow Canadians access to its investment program featuring a diversified global portfolio of real estate assets, all located outside of Canada, and carrying a total value of about US$3.83 billion.
Hines, based in Houston, is offering the Canada wealth management market access to the fund through its broker-dealer affiliate, Hines Securities Inc., and through New York-based iCapital, according to a statement from Hines.
The Hines portfolio is spread across eight countries, including the United States and Europe, and comprises almost two-thirds industrial and residential properties.
This is the first access for Canadians to certain Hines-sponsored investment products through the partnership between Hines Securities and iCaptial and its affiliates, according to the statement. More details about the Canadian initiative were not immediately available.
However, Hines has been operating in Canada for 15 years and has 120 employees across the country in offices in Toronto, Vancouver, Calgary and Edmonton.
Last year, Hines launched a venture to purchase and develop 1.5 billion U.S. dollars of real estate in Toronto, Vancouver, Montreal and Calgary.
John Morrison, former president and CEO of Choice Properties Real Estate Investment Trust, and John Reilly, former managing director with RBC Wealth Management, will oversee the expansion into Canada for Hines.
“I have been an admirer of Hines for many years for their long-term approach to investing and the results speak for themselves," Morrison said in the statement. "Canadian investors have access to a variety of domestic commercial real estate, while access to Hines-managed investments provides them with exposure to a global portfolio of various property types, creating a disciplined diversification opportunity outside our borders.”
iCapital services over US$153 billion in assets around the world and has over 1,000 employees in its offices in Zurich, London, Lisbon, Hong Kong Singapore and Toronto, according to the same document.
“Wealth creation is increasingly taking place outside the public markets. We are delighted to support Hines in their ambition to offer banks and wealth managers in Canada with facilitated access to the growth and diversification opportunities the private markets can offer in portfolios of private clients,” said Marco Bizzozero, head of international at iCapital, in the statement.