Hines European value-add fund beats fundraising target at close
European institutions have backed the flagship value-add fund for Hines in Europe to exceed its original fundraising target by more than 40%.
The manager said Hines European Value Fund (HEVF) has raised over €720m at the final close.
The fund received commitments from a primarily European group of 16 limited partners including German, Italian, Norwegian, Spanish, French and Finnish institutional investors, alongside Hines co-investment as sponsor.
The limited partner group includes subscriptions from Allianz, Intesa Sanpaolo Vita, Nordrheinische Ärzteversorgung (NAEV), Kirchliche Versorgungskassen KZVK / VKPB, OP Real Estate and the Finnish Church Pension Fund, Formuesforvaltning, Kommunaler Versorgungsverband Thüringen (KVT), Wealthcap and other well-respected German and Asian pension fund and insurance group clients.
Hines said, 12 of the fund’s 16 investors are first-time investors.
HEVF has a geographic mandate across the European Union (plus Norway) and flexibility of scope to invest in office, retail, logistics, residential and mixed-use opportunities in primary institutional markets.
In the first 12 months following the fund’s initial closing, HEVF has committed around €200m equity to the fund’s first three project investments in Stuttgart, Copenhagen and Barcelona, along with a fourth acquisition in exclusivity, the manager said.
Paul White, HEVF fund manager, said: “The HEVF management team and Hines leadership are delighted by the success of the capital raising for our flagship European value-add vehicle, which is intended to be the first in a recurring HEVF series stretching across cycles in our target markets.
“The deep Hines European network is generating strong, attractive pipeline, particularly off-market. We are focused now on the work of very selectively assembling a fund portfolio to deliver the investment objectives of those investor partners who have placed their trust in this mandate.”