HIG Capital is seeking to raise €1bn for its latest value-add Europe real estate fund, according to an investor’s meeting document.
The Teachers’ Retirement System of Louisiana’s (TRSL) meeting document shows that the pension fund had approved a $75m (€69.1m) commitment to the HIG Europe Realty Partners III fund.
TRSL’s investment will be made as long as it does not exceed 10% of the total capital raised for the fund.
HIG Capital’s predecessor fund, HIG Europe Realty Partners II, raised €673m at its close in February 2019 to mainly make investments in the small and mid-cap real estate sector in Europe.
The latest Europe fund will target value-add properties by investing between €15m to €50m in equity.
Europe Realty Partners III’s strategy could involve investing between 20% and 35% of its capital into both residential and industrial/logistics; placing 10% to 20% into hospitality and life sciences and healthcare assets; and investing between 0% and 20% in offices and 0% to 10% in other real estate.
TRSL has approved a $75m commitment to Bain Capital Real Estate Fund III, which is seeking to raise $3.75bn.
The Bain Capital fund has a leverage component of up to 75% with an average equity investment per asset of $20m.
As previously reported, Fund III, a non-core fund, is expected to avoid industrial, apartment, retail and office sector assets but will invest in some infill industrial assets.
Previous funds in the series have invested in assets like self-storage, medical office, senior housing, media/content creation space and affordable housing.
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