NEWS

Hines Global Income Trust Acquires Industrial Warehouse in United Kingdom

January 4, 2021

Cross Point Business Park represents Hines Global’s fifth strategic logistics acquisition worldwide over the past year while continuing the aggregation of the UK logistics platform

(LON­DON) – Hines, the inter­na­tion­al real estate firm, is pleased to announce that Hines Glob­al Income Trust, Inc. (“Hines Glob­al”) has acquired Cross Point Busi­ness Park, an indus­tri­al ware­house in the West Mid­lands, 24 miles east of Birm­ing­ham out­side of Coven­try, UK. The ware­house is leased to Restore PLC (LSE: RST), a sup­port ser­vices com­pa­ny. This off mar­ket trans­ac­tion was sourced by the local Hines office in the UK, a plat­form launched 25 years ago when Hines opened our Euro­pean head­quar­ters in 1995. The acqui­si­tion marks Hines Global’s fifth project in a port­fo­lio of strate­gi­cal­ly added UK ware­hous­es in just over a year.

Cross Point Busi­ness Park is a 147,000-square-foot, mod­ern spec­i­fi­ca­tion logis­tics ware­house con­struct­ed in 1994 and com­pre­hen­sive­ly refur­bished and extend­ed in 2015. It is locat­ed in the Gold­en Tri­an­gle,’ the U.K.’s pre­mier loca­tion for logis­tics and dis­tri­b­u­tion oper­a­tions. This loca­tion pro­vides direct access to major road­way net­works, ports, rail­ways and air­ports, enabling deliv­er­ies to reach over 90% of the UK pop­u­la­tion with­in four hours.

Cross Point Busi­ness Park’s loca­tion with­in the Gold­en Tri­an­gle’ fur­ther diver­si­fies our UK geo­graph­ic expo­sure, while exem­pli­fy­ing our strat­e­gy of har­ness­ing foren­sic analy­sis to iden­ti­fy fit for pur­pose, infra­struc­ture crit­i­cal build­ings in loca­tions with strong occu­pa­tion­al demand,” said Greg Coop­er, Direc­tor at Hines UK. At a time where increas­ing com­pe­ti­tion for land in the area from oth­er use class­es is ramp­ing up, this is a key acqui­si­tion to increase the attrac­tive­ness and val­ue of Hines Global’s broad­er port­fo­lio, and we antic­i­pate a fur­ther tranche of acqui­si­tions in the com­ing year in line with this strat­e­gy.”

The Mid­lands area, with more than twice the com­bined ware­hous­ing activ­i­ty of Lon­don, Scot­land and Wales, meets Hines Global’s strate­gic ini­tia­tive of tar­get­ing a mix of well-locat­ed indi­vid­ual units with rent growth poten­tial and cap­i­tal­izes on the expect­ed retail and e‑commerce growth. Online sales in the UK have mul­ti­plied five times in the last five years and are up 40% YTD. With the con­tin­ued growth of e‑commerce sales and omnichan­nel retail plac­ing greater empha­sis on deliv­ery times, we expect steady rental growth with­in the area for the fore­see­able future.

We are excit­ed for this oppor­tu­ni­ty to deep­en Hines Global’s UK logis­tics pres­ence and enhance our exist­ing port­fo­lio of diver­si­fied glob­al prop­er­ties,” said Omar Thowfeek, Hines Global’s Man­ag­ing Direc­tor – Invest­ments. The logis­tics sec­tor rep­re­sents close to 50% of our port­fo­lio and has proven to be an area of strong growth and resilience. We look for­ward to con­tin­u­ing to seek oppor­tu­ni­ties to expand our invest­ment in this sector.”

Hines has been invest­ing and devel­op­ing in the indus­tri­al real estate sec­tor since 1957 with a glob­al track record of 314 projects in 12 coun­tries. Glob­al­ly, the firm has acquired 38 mil­lion square feet of space and devel­oped 45 mil­lion square feet (with 8 mil­lion square feet of projects cur­rent­ly in design or under devel­op­ment) in the sector.

About Hines
Hines is a pri­vate­ly owned glob­al real estate invest­ment firm found­ed in 1957 with a pres­ence in 225 cities in 25 coun­tries. Hines has approx­i­mate­ly $144.1 bil­lion¹ of assets under man­age­ment, includ­ing $75.5 bil­lion for which Hines serves as invest­ment man­ag­er, includ­ing non-real estate assets, and $68.6 bil­lion for which Hines pro­vides third-par­ty prop­er­ty-lev­el ser­vices. The firm has 165 devel­op­ments cur­rent­ly under­way around the world. His­tor­i­cal­ly, Hines has devel­oped, rede­vel­oped or acquired 1,426 prop­er­ties, total­ing over 472 mil­lion square feet. The firm’s cur­rent prop­er­ty and asset man­age­ment port­fo­lio includes 576 prop­er­ties, rep­re­sent­ing over 246 mil­lion square feet. With exten­sive expe­ri­ence in invest­ments across the risk spec­trum and all prop­er­ty types, and a pio­neer­ing com­mit­ment to sus­tain­abil­i­ty, Hines is one of the largest and most-respect­ed real estate orga­ni­za­tions in the world. Vis­it www​.hines​.com for more infor­ma­tion.
¹AUM includes both the glob­al Hines orga­ni­za­tion as well as RIA AUM.

About Hines Glob­al
Hines Glob­al is a pub­lic, non-list­ed real estate invest­ment trust spon­sored by Hines. It com­menced oper­a­tions in 2014 and invests in com­mer­cial real estate invest­ments locat­ed in the Unit­ed States and inter­na­tion­al­ly. For addi­tion­al infor­ma­tion about Hines Glob­al, vis­it www​.hines​glob​al​in​cometrust​.com.

For­ward-Look­ing State­ments
State­ments in this press release, includ­ing inten­tions, beliefs, expec­ta­tions or pro­jec­tions relat­ing to the acqui­si­tion described here­in, are for­ward-look­ing state­ments with­in the mean­ing of Sec­tion 27A of the Secu­ri­ties Act of 1933, as amend­ed, and Sec­tion 21E of the Secu­ri­ties Exchange Act of 1934, as amend­ed. Such state­ments are based on cur­rent expec­ta­tions and assump­tions with respect to, among oth­er things, the val­ue to be gen­er­at­ed by the ful­fill­ment cen­ter, future expan­sion of Hines Global’s world­wide logis­tics port­fo­lio, future eco­nom­ic, com­pet­i­tive and mar­ket con­di­tions and future busi­ness deci­sions that may prove to be incor­rect or inac­cu­rate. Impor­tant fac­tors that could cause actu­al results to dif­fer mate­ri­al­ly from those in the for­ward-look­ing state­ments include the risks asso­ci­at­ed with Hines being able to suc­cess­ful­ly man­age the ful­fill­ment cen­ter, the ten­ant remain­ing com­mit­ted to its lease oblig­a­tions and con­tin­u­ing to pay rent in a time­ly man­ner, Hines Glob­al being able to locate and close on addi­tion­al oppor­tu­ni­ties to invest in logis­tics assets, and oth­er risks described in the Risk Fac­tors” sec­tion of Hines Glob­al’s Annu­al Report on Form 10‑K for the year end­ed Decem­ber 31, 2019, as updat­ed by its oth­er fil­ings with the Secu­ri­ties and Exchange Com­mis­sion. You are cau­tioned not to place undue reliance on any for­ward-look­ing
state­ments.

Press Contacts
George C. Lancaster

Senior Vice President
Corporate Communications
713 966 7676