LONDON—Lionstone Investments, a privatelyowned, US-based real estate investment company headquartered inHouston, has partnered with London-based Hermes RealEstate to launch a new real estate investment program,capitalized with an initial $250 million of equitycommitments.

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Lionstone-Hermes Real Estate Venture willinvest primarily in office properties in high-growth USmarkets. The vehicle is being formed with an open-endedstructure allowing for longer term holds of high-qualityassets.

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The venture represents the first partnership between Hermes RealEstate and Lionstone, and Hermes Real Estate's only vehiclepursuing office properties in internationally competitive UScities. This also represents a continuation of Lionstone's strategyto invest in well-located office properties inhighly targeted markets with unique demand drivers and soundfundamentals. Both parties are excited to pursue what they view asa large-scale opportunity.

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“We were thrilled to find a like-minded partner in Hermes RealEstate who places tremendous value on a research-based approach,executing real estate investments based on a firm understanding ofmarket fundamentals and end-user demand,” said GlennLowenstein, CIO of Lionstone.

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Chris Taylor, chief executive, Hermes RealEstate, added: “We have been actively acquiring US real estatesince 2011 as part of our global real estate program and aredelighted to have now identified a best in class office investmentmanager to complement our two existing platforms. Lionstone sharesour own occupier-driven approach to understanding the keyperformance drivers from office investment with a long term focusupon responsible and sustainable investment strategies.”

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Hermes is one of the largest realestate investors in the UK with over $10 billion (£6.6B) of assetsunder management. Lionstone, of Houston, TX, is a privately-ownedreal estate investment firm that specializes in executing nationalinvestment strategies on behalf of institutional investors and highnet worth individuals.

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Hodes Weill Securities, LLC acted as theexclusive financial advisor and placement agent. Separately, Hermesand the Canada Pension Plan Investment Board saidFriday that today that they had formed a new UK regional jointventure. The partnership involves Hermes selling 50% of thedevelopment phase of Wellington Place in Leeds to Toronto-basedCPPIB.

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David Phillips

David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.