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Korea’s NPS and Hines join for $1.5bn build-to-core venture

One Vanderbilt. [Photo: Gaiusahala]

The National Pension Service of Korea has linked with US-headquartered property company Hines to form a $1.5 billion “build-to-core” joint venture. The new JV is intended to “capture evolving demands of modern spaces across real estate”, the companies said in a statement.

The joint venture will target urban infill developments across sectors including mixed-use, residential, offices, and logistics. The firms added that these will be located in “high-barrier-to-entry markets” globally.

Already, 20% of the venture is committed to projects in North America and Asia-Pacific and the venture aims to create a portfolio of prime assets “resilient to market uncertainties”, the statement said.

NPS and Hines believe long-term investments in proven locations, supported by innovation and new technology, will capture sustained demand “and create outsized value”.

Hines will be responsible for sourcing, designing, and executing development opportunities globally. Hines is already present in 225 cities worldwide.

NPS and Hines have previously partnered on investments including Sony Center in Berlin, One Vanderbilt and One Madison in New York.

“The current economic climate, shaped by global responses to the pandemic, has impacted all sectors of commercial real estate,” said Hyo-Joon Ahn, chief investment officer of the National Pension Service of Korea. “This venture has committed to a long-term strategy capitalising on the transformation of living environments, consumer behaviour and space-use patterns combined with latest technology in real estate development.”