Hines' India arm to launch third-party asset management business this year

Hines, the US-based investor-cum-developer that has more than $144 billion of assets under management, is looking to launch a third-party asset management business in the country this year.

“In India, we will do end-to-end asset management for select third-party portfolios, starting with office assets. The scope will include both leasing and property management services,” said Amit Diwan, managing director and country head, Hines India.

Globally, its asset management business includes 344 properties (143.7 million square feet). Recently DLF bought Hines’ stake in One Horizone Center for Rs 780 crore. Both are also building another commercial project in Gurugram.

Hines is a privately owned global real estate investment, development and management firm, founded in 1957, with a presence in 225 cities in 25 countries. The investor is also looking to float platforms for real estate assets in the country. “We are in dialogue with several developers and landowners in India and will share more detail as and when possible,” Diwan said.

Hines is looking to enter markets such as Pune this year and expand in three geographies it has entered into. They are the National Capital Region, Mumbai and Bengaluru, he said.

Of its $144.1 billion of assets under management, Hines is investment manager for $75.5 billion and provides third-party property-level services for $68.6 billion. “In the past 18 months we have opened offices in Mumbai and Bengaluru, where we have both ongoing and pipeline projects,” he said.

He added the pandemic would lead to resurgence in the residential sector.

“This trend is emerging since the lockdown was lifted and we expect this to continue. It’s been driven by better affordability, low interest rates, and the need for extra space in the house,” he said.

In the case of the commercial sector, remote working affected the take-up of leasing in 2020. “We expect companies to return to office in 2021, coinciding with vaccination,” he said. Hines also does development management business in the country. 

Last year, the Bengaluru-based DNR group tied up with Hines to do a 1 million square feet office project in the city.

Diwan last year told Business Standard Hines had signed two agreements, and had some more at a term-sheet stage. However he declined to name the developers.