Hines Expands into UK Data Centre and Self-Storage Sectors, Eyeing Growth in Alternative Real Estate Assets

Hines, a U.S. investment and development giant, is making moves into the UK data centre and self-storage sectors as it expands into alternative real estate asset classes. This decision comes after the company’s recent announcement of its first deal in the UK build-to-rent sector.

With the data centre market growing rapidly, Hines is among a number of investors looking to capitalize on this trend. The company has already developed data centres in the U.S. and recently partnered with Compass Datacenters for a project in Milan, marking its first European development in this sector.

Ross Blair, Head of Hines UK, spoke about the company’s plans at Bisnow’s UK Real Estate Outlook event, stating that there is a significant amount of institutional capital interested in the data centre sector. Other major players, such as Blackstone and Starwood, are also investing heavily in this area, driven by the increasing demand for digital infrastructure.

In addition to data centres, Hines is also close to finalizing a deal in the UK self-storage sector. Blair emphasized the company’s interest in expanding in the UK living sectors, including student housing, as long as they can provide affordable options for customers.

Despite the challenges posed by construction costs and affordability, Hines remains optimistic about the demand for Grade A offices in the UK. The company believes that the limited supply of high-quality office space will continue to drive rents up in the coming years.

Lendlease is another investor looking to expand in the build-to-rent sector, following the success of its Elephant Park scheme in south London. The company sees significant growth potential in the BTR sector, with market penetration currently below 2%.

Bisnow will be hosting a UK data centre real estate conference in London on April 25th, featuring insights from industry experts and investors like Blackstone. This event will provide valuable information for those looking to capitalize on the growing opportunities in the data centre market.