Real estate fund manager Hines has teamed up with Burstone to launch a pan-European light industrial joint venture.
The joint venture has been formed between Hines European Real Estate Partners III (HEREP III) and Burstone, which will invest 20% of the equity and be responsible for investment and asset management.
The value-add and opportunistic venture, which is initially targeting Germany and the Netherlands, has already deployed over €40m to acquire six assets. The acquired assets include four properties in Germany and two in the Netherlands, totalling 49,000sqm.
Alfonso Munk, global co-head of investment management, Hines, said: “Today’s market presents a compelling opportunity for patient capital, as supply chain shifts driven by nearshoring and deglobalisation strengthen the role of light industrial real estate.
“With attractive entry pricing and resilient fundamentals, this segment is well suited to our HEREP III strategy.”
Paul Rodger, managing director at Burstone Europe, said: “The light industrial market, which has materially repriced since the peak of mid 2022, remains fragmented in many core Continental European locations.
“Much of the product is underloved and undermanaged, which offers a compelling opportunity to unlock value through our asset management approach. We are excited to be partnering with Hines on this new venture as we leverage the expertise, track record and on-the-ground relationships of our regional teams to source and acquire assets and then deliver value-add initiatives.”
Andrew Wooler, CEO of Burstone Group, said: “This partnership is another milestone in further broadening our capital partner base, and delivering on our strategy of building global fund and asset management business.
“Our focus now is to execute on an attractive pipeline of strategically aligned and accretive opportunities in high-growth locations in Europe’s dominant industrial and logistics submarkets.”
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