DALLAS-Behringer Harvard and HCI Capital AG plan to acquire $1.3 billion of assets in the UK, Germany and Netherlands, using 75% to 80% leverage for a shared equity pool. The funds, packaged as a two- to three-year spending plan, will target value-add buys of all product types.
In this morning's press conference, the companies' top executives said the first deal under the alliance will be disclosed in the not too distant future. The alliance is the result of a longstanding business relationship between Dallas-based Behringer Harvard and Hamburg-headquartered HCI, which acquired their first JV property in March--a five-story office building in Amsterdam.
Going forward, the acquisition strategy is to create a real estate pool of stand-alone joint venture assets, each underwritten separately and in different manners, according to Oliver Georg, managing director of HCI. The German partner will oversee the assets, eyed as three- to six-year holds.
As Behringer Harvard preps for the trek into Europe, Robert S. Aisner, Behringer Harvard's COO, says the investment strategy will be much like it's employed in the US: development, redevelopment and value add. With both partners kicking in equity, he says "it provides a healthy basis for a fair partnership."
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