Hines raises initial $750m for open-ended US core-plus fund

International real estate firm Hines has launched an open-ended US core-plus fund with an inital $750m (€631m) of investor commitments.

The manager said the capital raised at the first close of the Hines US Property Partners (HUSPP) includes a $100m investment from Hines and gives the fund over $1.2bn in immediate investment capacity.

Hines said the fund’s initial capital raise ws backed by a diverse group of institutional investors comprised of public pension plans, insurance companies, non-profit organisations and family offices.

HUSPP, which plans to “buy, create, and manage to core”, expects to invest across the living, industrial, office and mixed-use sectors, as well as select niche sectors, such as life sciences and self-storage, the manager said.

David Steinbach, global CIO at Hines said: “As real estate continues its transformation into a service, we believe investors are finding increased value to work directly with large scale operators who can bring innovation, flexibility and simplicity for the ultimate customers which are our tenants.

“This fund will provide investors with direct access to our best thinking and execution capabilities.”

Alfonso Munk, CIO of Americas at Hines, said: “As we emerge from the pandemic, the real estate industry is at a critical inflection point and successful managers will need to examine their portfolios in an increasingly dynamic environment.

“We are excited to launch this fund and begin implementing our strategy to buy, create and manage to core in order to meet investor demand and lead the industry in re-defining the future standards of core real estate.”

Adriana de Alcantara, HUSPP fund manager at Hines, said: “As we continue to set strategies and invest on behalf of the fund, we will utilise our core strengths – global reach, operational expertise and vertically integrated management capabilities – that have served our investors throughout our firm’s history.”

Laura Hines-Pierce, senior managing director, office of the CEO at Hines, said: “This is a monumental achievement for Hines as we look to scale our business by meeting investor needs through an expanded flagship funds suite and continue building upon my grandfather’s legacy.”

The open-ended, perpetual fund is expected to continuously raise capital.

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