KKR & Co. L.P.
KKR & Hines Form Joint Venture to Develop Houston's Pinto Business Park
NEW YORK--(BUSINESS WIRE)--
Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, "KKR")
today announced the formation of a joint venture with Hines and Pinto
Realty Partners to develop Pinto Business Park, a 971-acre
master-planned business park located at the corner of Beltway 8 and
Interstate 45 in Houston, Texas.
Under the terms of the agreement, Hines and KKR have exclusive rights to
develop the business park, which is owned by Pinto Realty Partners, a
subsidiary of Cockrell Interests Inc. The partnership will primarily
look to pursue an industrial build-to-suit strategy for credit tenants.
Located in the heart of Houston's north/northwest submarkets, where
industrial vacancy rates are some of the lowest in the country, Pinto
Business Park is Houston's largest development-ready business park in
Houston. With drainage, detention, roads and infrastructure already
designed, the site is shovel- ready, with tracts available for immediate
construction and delivery.
The development program includes an immediate focus on build-to-suit
transactions and individual land sales to corporate end- users.
"Pinto Business Park will offer manufacturing clients the benefits of a
large-scale, controlled business park setting, and distribution clients
the benefit of a second-to-none location that has frontage and eight
access points on the city's main connections to Houston and its
surrounding markets," said Palmer Letzerich, managing director at Hines.
When fully built out, the park represents an opportunity of nine million
square feet. Tenants will benefit from the business park's location,
which is proximate to Bush Intercontinental Airport, downtown and the
Port of Houston.
With vacancy at a 35-year low, ongoing positive absorption, increasing
values and moderate new construction, the Houston industrial real estate
market continues to be one of the strongest in the country.
"We are looking forward to leveraging the partnership's development
capabilities and access to capital on a site that we have owned for over
20 years," said Ernie D. Cockrell, managing director of Pinto Realty
Partners. "With entitlements and development capital in place, now is
the time to transform a best-in-class site into a best-in-class
"We are very excited about the opportunity to partner with Pinto Realty
Partners and to continue to expand our relationship with Hines, one of
the world's preeminent leaders in the commercial real estate space,"
Ralph Rosenberg, Global Head of Real Estate at KKR.
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a
leading global investment firm with $61.5 billion in assets under
management as of June 30, 2012. With offices around the world, KKR
manages assets through a variety of investment funds and accounts
covering multiple asset classes. KKR seeks to create value by bringing
operational expertise to its portfolio companies and through active
oversight and monitoring of its investments. KKR complements its
investment expertise and strengthens interactions with investors through
its client relationships and capital markets platform. KKR is publicly
traded on the New York Stock Exchange (NYSE:KKR).
About Pinto Realty Partners
Pinto Realty Partners, LLC a wholly owned subsidiary of Cockrell
Interests, Inc., serves as a diversified real estate investment and
development platform that focuses on strategic real estate investment.
Currently, Pinto Realty Partners directly owns and manages over $300
million in real estate assets. Its current portfolio includes large
urban in-fill land development, a 450-acre deepwater industrial port
focused on coal export and crude storage, and numerous other strategic
land holdings and cash flow assets. In addition to strategic one-off
deals, Pinto Realty Partners seeks exposure to markets it believes are
attractive by identifying and forming relationships with talented
Hines is a privately owned real estate firm involved in real estate
investment, development and property management worldwide. The firm's
historical and current portfolio of projects that are underway,
completed, acquired and managed for third parties includes 1,192
properties representing more than 482 million square feet of office,
residential, mixed-use, industrial, hotel, medical and sports
facilities, as well as large, master-planned communities and land
developments. 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. Hines is also a world
leader in sustainable real estate strategies, with extensive experience
in LEED, ENERGY STAR®, BREEAM, Haute Qualité Environnementale and DGNB
green building rating systems. Visit www.hines.com
for more information.
Kristi Huller, 212-230-9722
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