Concord Pacific and HB Management to Become the Majority Shareholder in HQ Capital Real Estate

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Jun 09, 2021, 09:00 ET

MOVING FORWARD, CONCORD PACIFIC AND HB MANAGEMENT WILL MAINTAIN A CLOSE STRATEGIC RELATIONSHIP WITH GLOBAL INVESTMENT ADVISORY FIRM, HQ CAPITAL

NEW YORK, VANCOUVER, BC, SEATTLE, HONG KONG, June 9, 2021 /PRNewswire/ - Concord Pacific and HB Management today announced it has entered into strategic agreements to become a majority shareholder of HQ Capital Real Estate. HQ will continue to own a minority interest in the ongoing business and maintain a close partnership going forward.

Concord Pacific has always been active in multiple industries, including real estate development, hospitality, information technology, green energy, and telecommunication globally. Concord Pacific and HB Management have been looking for the right opportunity and the right partner to enter the real estate fund management business.

David Ju, Concord Pacific "HQ Capital Real Estate's stellar coast-to-coast track record and impeccable support from both Germany and New York management teams attracted us to this strategic alliance. HB Management has also been a great partner of ours in the United States since 2018. We are excited about another wonderful endeavor with HB with their expertise in the residential multifamily business. Our vision is to collaborate with HQ's well-established team and to explore new horizons in multiple markets."

Jon Breiner, HB Management, "HB Management is very pleased with the opportunity to strategically invest with our close partner, Concord Pacific, by bringing new strategic resources to HQ's multifamily investment platform. HQ brings a tremendous track record and new opportunities for HB and Concord to diversify their investment initiative, and to expand HQ's capital horizons. This is a true win-win."

Dr Joachim Faber, Chair of the supervisory board of HQ Holding. "With the transfer of the majority of its real estate business, HQ Capital continues to shape its profile as private equity specialist of HQ."

Dr Bernd Türk, CEO of HQ Capital. "We deliberately took time to evaluate all options for the business in the interest of our existing investors. We are delighted to partner with Concord Pacific and HB Management and are convinced that they are best positioned to take our real estate business to the next level, creating added value for existing and new investors."

The completion of this transaction is expected to occur in the next months of 2021 and is subject to customary approvals. The parties agreed not to disclose further details of the transaction. HQ Capital Real Estate will continue to build on its proven investment strategy focused on partnering with high-quality apartment developers and selectively acquiring existing multifamily properties with significant value creation potential in key growth markets across the United States.

About Concord Pacific Group

Concord Pacific Group is a private enterprise with investments and operations in real estate development, green energy, telecommunications, information technology, hospitality. It is widely recognized and most well-known for developing Canada's largest mixed-use high-rise urban communities including defining the downtown skylines of Vancouver and Toronto. The company has also made its mark on the London skyline and W1 and has expanded its business to the US. For over 30 years, Concord Pacific has been known as one of North America's most innovative and preeminent real estate developers with a focus on world-class master-planned urban high-rise communities. Concord Pacific has successfully delivered more than 150 high-rise residential towers representing approximately 26 million square feet of livable space. Concord Pacific has built a practice around sustainable investments and multi-disciplined diversification. The visionary concept of integrating technology and environmentally sustainable solutions into a full spectrum of its businesses has carried the group successfully beyond real estate development.

Visit concordpacific.com for more information.

About HB Management

Headquartered in Seattle, Washington, HB is a business and investment management entity of the Hewson and Breiner family offices. The managing principals of HB are Edward Hewson and Jonathan Breiner, second- and third-generation managers of their family businesses. HB's legacy as a U.S. multifamily investor began in apartment buildings in the suburbs of New York City in the 1950s, and expanded to the Western U.S. in the 1990s. Today, a good portion of the firm's investment has been focused on the Seattle area of the Pacific Northwest. HB manages over $3 billion worth of multifamily real estate and controls entities specializing in development, management, large-scale acquisitions, and brokerage. HB has been an instrument for large institutional investors and family offices throughout North America in the apartment building sector. In addition, HB has diversified interests in other asset classes such as hospitality, retail, transportation, and communications. HB's subsidiaries in the multifamily space include: HB Management, Indigo Real Estate Services, and Paragon Real Estate Advisors. HB Management, established in 2006, has developed large-scale apartment projects in the Pacific Northwest of the United States with a focus on Seattle, Washington. The company has successfully developed high-rise apartments in the downtown environment and mid-rise and suburban style apartments outside of the city core business districts. HB also has master planned neighborhoods near transit centers in Seattle. Indigo, founded in 1995, manages approximately 10,000 apartment units in four states on behalf HB partnerships, institutions, and other high net worth investors. The company has managed and reported for some of largest financial institutions in the United States. Paragon Real Estate Advisors, founded by Ed Hewson and other partners in 1995 and later acquired 100% by HB in 2010, is the Seattle area's largest privately owned apartment building brokerage, with a history of nearly 2,000 multifamily investment transactions.

Visit hbnorthwest.com for more information.

About HQ Capital Real Estate

Founded in 1989 as Real Estate Capital Partners, HQ Capital Real Estate is a dedicated U.S. real estate investment advisor specializing in multifamily investments. Since its inception, the firm has invested in approximately $15 billion of U.S. real estate through sponsored funds and separate accounts on behalf of global institutions, family offices and ultra-high net worth individuals. Through its consistent participation in the market over the past three decades, HQ Capital Real Estate has developed deep relationships with some of the country's top real estate owners, operators, developers, brokers and lenders, providing the firm with access to a pipeline of exclusive investment opportunities. Overseeing these transactions is a committed senior management team who has worked together since 2005 and has an average tenure at the firm of 20 years. In-house capabilities of the company go beyond its investment management expertise and include asset and construction management, capital markets, legal, and tax structuring expertise. These attributes combined have resulted in a successful historical multifamily track record of 221 realized opportunistic and value add fund investments with an overall gross IRR of 21.1%.

About HQ Capital

Founded in 1989, HQ Capital has invested around $8billion in private equity in the U.S., Europe and Asia through funds and individual mandates on behalf of its investors as to date. More than 90 specialists identify the best private equity managers from New York, Bad Homburg and Hong Kong and invest in them through primary, secondary and co-investments. HQ Capital relies on more than 30 years of local expertise and networks in the respective markets. Since its foundation, the firm has made around 685 private equity investments in North America, Europe and Asia with over 275 managers and launched 26 fund programs. A sustainable increase in value is just as important as broad diversification and precise risk management.

Visit www.hqcapital.com for more information.

SOURCE Concord Pacific