Global real estate firm Hines has raised an initial €800m for its new European open-ended core-plus fund.
The manager said the Hines European Property Partners (HEPP) fund, launched less than three months ago, secured the equity commitments from both new and existing investors, from the US and Europe at its first closing.
Hines said HEPP aims to attract €1bn in investor equity in the first 12 months from investors around the world.
HEPP is seeking to acquire and develop sustainable assets across a range of sectors including logistics, office, living – residential, student, and senior housing.
Hines said the has already secured exclusivity on two separate deals in the living and office sectors.
Alex Knapp, CIO for Europe, at Hines, said: “We had a strong conviction that this fund would mirror the appeal of its global sister core-plus funds in the US and Asia, which has been realised through this exceptional equity raising in its first phase.
“With growing momentum, HEPP is expected to exceed our target of €1bn investor equity by the end of this year from investors seeking diversified global exposure.”
Jorge Duarte, fund manager of HEPP at Hines, said: “As anticipated, we are experiencing significant investor appetite for this fund. The macro trends such as ESG prioritisation, technological advancement, and generational shifts are accelerating obsolescence across all sectors which is creating opportunities for core plus investing - there are a limited number of vehicles in this space.
“We believe our local presence across the major European markets and vertically integrated model means we are well placed to meet and capitalise on this demand.”
To read the latest edition of the latest IPE Real Assets magazine click here.