HOUSTON – Hines is selling the 1.8 million square foot Shell Plaza office complex in downtown Houston for $550 million. The buyer is an affiliate of Enterprise Products Company, which was founded by the late billionaire Dan Duncan.
Completed in 1970, Shell Plaza, a two-building complex, was developed by Hines and designed by Skidmore, Owings & Merrill. Shell Plaza is the North American headquarters of Shell Oil Company and the law firm Baker Botts LLP.
“We are pleased to be selected as the winning bidder to acquire Shell Plaza,” said Richard H. Bachmann, president and CEO of EPCO. “Shell Plaza is a trophy, Class A office property with a premier location in Houston’s Central Business District. This long-term investment reflects our confidence in Houston, its strong and diverse economy, as well as its role in global commerce and its attractive environment for business development.”
“Hines has had a long successful history as an owner of Shell Plaza, and we are honored to have had such a strong relationship with one of Houston’s most important corporate citizens, Shell Oil Company. Since the Hines U.S. Core Office Fund and our partners acquired Shell Plaza in 2004, it has been a great investment, and we are pleased that an outstanding Houston company will be the new owner,” said Charles Hazen, CEO, Hines U.S. Core Office Fund.
Completion of the transaction is subject to customary due diligence and is expected to close in August 2012. Hines will continue to manage and lease Shell Plaza subsequent to the completion of the transaction.
Other office buildings Hines owns and/or manages in downtown Houston include: 717 Texas, JPMorgan Chase Tower, 601 Travis, 1100 Louisiana and BG Group Place. With offices in 110 cities in 18 countries, and controlled assets valued at approximately $22.9 billion, Hines is one of the largest real estate organizations in the world.
Formed in 1968, privately held Enterprise Products Company is headquartered in Houston also owns the 1100 Louisiana office complex in downtown Houston.