Hines, Sumitomo Life Realty partner on Park Avenue purchase

Real Estate Weekly, Sept 3, 2003

Hines, an international real estate firm, formed a strategic partnership with Sumitomo Life Realty with its purchase of three office buildings in the United States, two of which are in New York City.

On August 19, Hines purchased 499 Park Ave. a 28-story, 297,713-square-foot-building designed by architect I.M. Pei and 425 Lexington Ave. a 31-story, 675,612-square-foot building designed by Murphy/Jahn.

The Park Avenue building sold for $147.8 million. However, the selling price for the Lexington Avenue property was not disclosed.

In April, Hines announced its intentions to form a partnership with Sumitomo Life, a wholly owned subsidiary of Sumitomo Life, the third-largest insurance company in Japan.

"Since the mid-1990s, our firm has strategically pursued real estate asset management business," said Gerald D. Hines, chairman of Hines.

"This transaction represents another major step in that direction and an important milestone for us. We are very pleased to be teaming up with an institution of Sumitomo Life's standing in the world business community."

Hines also purchased a 236,362-square-foot building in Washington, D.C. for an undisclosed amount.

Hines will assume management and leasing responsibilities for the properties.

The parties intend to consider future joint projects involving the acquisition and ownership of office buildings in the United States and Japan by tapping into capital sources around the globe and utilizing their extensive real estate and investment expertise.

"We are very happy to be in partnership with the premier owner and operator of U.S. office buildings," said Norio Morimoto, president of Sumitomo Life Realty New York Inc.

Morgan Stanley is acting as the sole financial advisor to Hines on this transaction.

Hines is a privately owned real estate firm involved in developing, acquiring, leasing and managing real estate, as well as providing extensive global investment management and advisory services.