HQ Capital, the new investment firm comprising Auda International and HQ Group’s real estate and buyout businesses, is looking at real estate secondaries as part of its investment strategy amid rising deal flow in the asset class.
“We are currently evaluating real estate secondaries as a potential enhancement to our offering,” a spokeswoman for HQ Capital said in an emailed statement to Secondaries Investor.
On Tuesday, asset manager HQ Group said it would combine three of its subsidiaries – Auda, Real Estate Capital Partners and Equita – under a new brand called HQ Capital. The firm’s real estate operations currently include US-focused primary investments in existing properties and development projects, according to HQ Capital’s website.
The firm will continue to invest and build out its private equity secondaries business. Most recently, it acquired secondaries funds and hired a secondaries professional, Christian Munafo, from Thomas Weisel Global Growth. Munafo joined the firm in August to develop its secondaries operations.
HQ Capital has invested in over $12 billion in US real estate since 1989 and makes investments in multifamily residential, office, industrial, retail, hotel and mixed-use properties, according to its website.
The real estate secondaries market is expanding rapidly. Transaction volume in real estate secondaries could hit $9 billion this year, up from $4 billion in 2014, according to a July report by advisory firm Greenhill Cogent. The California Public Employees’ Retirement System (CalPERS) is currently selling a $3 billion real estate portfolio, and GIC is coming to market with a $1 billion portfolio.