SANTIAGO, CHILE-Union Investment Real Estate GmbH has hired Hines to manage four of its office buildings here. This move marks the first move into Chile for Hines.
Union is an asset management firm based in Frankfurt, Germany. The company’s portfolio here within the Santiago market totals 354,633 square feet. The properties include Torre Paris, Bandera 76, Teatinos 254 and the Xerox building.
Eduardo Bo, director of property management for Hines South America, says the properties are almost fully leased to both multinational companies and Chilean firms. “While this assignment represents Hines first foray into Chile, we hope to expand our presence in this stable, growing real estate market,” Bo says. Hines entered the Brazilian real estate market nearby in 1998, and has developed more than 15 million square feet of premier office, industrial and residential space in the country, and currently manages 9.5 million square feet there.
Strong economic growth in the Latin American office markets is translating into a healthy demand for office space, according to a March 2011 report by Jones Lang LaSalle. The market here in Santiago, however, has seen steady supply increases, with about 1.4 million square feet added in 2010. New additions include the opening of the 800,000-square-foot Titanium Tower, which holds about half of the market’s class A office space. This excessive supply has led to a weak office market, according to JLL.
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