SAO PAOLO, BRAZIL- HCB Interests LP, a new fund formed by Hines and the California Public Employees Retirement System, plans to spend $200 million in South America. Using $100 million of equity and $100 million of debt, investments will be made in the office, industrial and residential sectors. The fund will focus on Brazil and may also invest in Argentina and Chile.Hines entered the Brazilian real estate market in 1998 and has developed about three million sf of office and industrial space there. Hines’ Brazil-based VP Steve Dolman tells GlobeSt.com the life of the CalPERS fund is eight years, which means the money will be invested over the first three or four years and then liquidated prior to the end of the eighth year.

“We strongly believe that the domestic market will reveal several industrial and office development opportunities in the next three years,” he says. “This fund positions us well to take advantage of them.”

The fund already has landed one office building and two industrial build-to-suit deals. The office acquisition was the Burity Building, a 90,000-sf asset in Sao Paulo that is fully leased to General Motors. Hines’ stated plans for the asset include renovation of common areas and mechanical systems to accommodate GM. Hines has not revealed the acquisition price or the length of GM’s lease commitment, which is believed to be between five and seven years.

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