Tuesday , 19 November 2019
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Lionstone and Hermes Form $250 Million Fund for U.S. Office Purchases


Glenn Lowenstein of Lionstone Investments, Houston.

Glenn Lowenstein of Lionstone Investments, Houston.

HOUSTON — Lionstone Investments, a Houston-based real estate investment company has partnered with Hermes Real Estate, one of the largest real estate investors in the UK with over £6.6 billion of assets under management, to launch a new real estate investment program, capitalized with an initial $250 million of equity commitments.

Lionstone-Hermes Real Estate Venture will invest primarily in office properties in high-growth U.S. markets. The vehicle is being formed with an open-ended structure allowing for longer term holds of high-quality assets.

The venture represents the first partnership between Hermes Real Estate and Lionstone, and Hermes Real Estate’s only vehicle pursuing office properties in internationally competitive U.S. cities. This also represents a continuation of Lionstone’s strategy to invest in well-located office properties in highly targeted markets with unique demand drivers and sound fundamentals. Both parties are excited to pursue what they view as a large-scale opportunity.

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

Chris Taylor, Chief Executive, Hermes Real Estate, added: “We have been actively acquiring U.S. real estate since 2011 as part of our global real estate programme and are delighted to have now identified a best in class office investment manager to complement our two existing platforms. Lionstone shares our own occupier-driven approach to understanding the key performance drivers from office investment with a long term focus upon responsible and sustainable investment strategies.”

Hodes Weill Securities, LLC acted as the exclusive financial advisor and placement agent.

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