US developer and investor Hines has signed an agreement with Indian company KGK to develop and manage a residential construction project in Sant Pere de Ribes, in the surroundings of Barcelona. The project is expected to involve an investment of some EUR 80 mln.

The company plans to build around 300 residential units on the site, which offers potential for around 50,000 m2 of housing and services facilities. Construction work is planned to start in 2012, with completion planned for 2016.

The scheme is aiming for a LEED for Neighborhood Development (LEED-ND) certification, a new initiative of the US Green Building Council.

'We have selected Hines because we think that the company is the best suited for carrying out this project, due to the quality of its buildings and its respect for the environment,' said Tobias Peterson, real estate director of KGK in Spain.

The move is in line with Hines' plans to shift its focus to residential development. The US privately owned group said earlier this year that it is stepping up its exposure to residential development as a result of a global shift among capital providers to financing housing projects. 'Financiers are exhibiting a greater willingness to provide capital for residential development because this market segment allows financing structures that lower risks,' said Michael Topham, regional CEO in charge of all development and operations in the EMEA region.

The Houston-based group has roughly 1.8 million m2 of space under development across the European continent with offices and residential each representing 40% of the business.