India—International real estate firm Hines recently announced the launch of its Hines India Residential initiative. The venture has been drawn up with the purpose of investing in multi-phased, for-sale residential developments that require long-term equity capital. The initiative will be targeting key urban centers of the country, focusing heavily on assets in the National Capital Region, the Mumbai Metropolitan Region, Bangalore and Pune. One of the goals is to partner with local Indian developers. According to the official announcement, the program has an initial capitalization of around $250 million.
Although the company has had a presence in India since 2006, where it currently manages assets worth around $455 million, the new platform will provide on-the-ground risk management, dedicated management team, and will benefit from Hines’ global residential experience that currently includes approximately 58,000 units, a total of nearly 23 million square feet in nine countries. Hines’ appointed country head Yash Gupta will head the new team, while the management team will be led by Senior Managing Director Leo Chen.
According to Gupta, the company is “very pleased to add residential to our India platform and look forward to delivering a number of exciting projects in this sector.” He also noted that the company would reduce the exposure of the newly launched initiative’s developments to the cyclicality that has proved to be a burden for residential development in India.
Meanwhile, Hines President and CEO Jeff Hines, praised the more comprehensive approach that goes into the Hines India Residential program. “In emerging markets that are undersupplied in all asset classes, the execution of Hines’ best practices by dedicated, local and long-tenured management teams results in a strict approach to risk management that is flexible for local conditions and ultimately delivers better performances for our investors,” he says.