Hines has raised over €1.6bn for its latest European value-add European real estate fund, surpassing its €1.5bn target.
The global real estate manager said the Hines European Value Fund 3 (HEVF 3) fund, which was mainly backed by pension funds and insurers, has so far committed over €300m of its capital.
HEVF 3, which is being rebranded as Hines European Real Estate Partners (HEREP) III, was backed by 35 investors, including new and existing ones, in addition to Hines’s co-investment.
The manager said the fund, which was launched in mid-2022, has invested equity to assemble an initial portfolio of four assets in three markets and expects to continue investing until mid-2026 as it mainly targets student accommodation, distribution logistics and sustainable office spaces in prime locations.
Paul White, senior managing director and fund manager of the HEREP series at Hines, said: “With HEREP III now closed for equity subscriptions and almost 20% allocated into highly attractive value-add opportunities across Europe, we are fully focusing our attention to sourcing additional opportunities to grow and diversify HEREP III’s portfolio.
“The fund aims to deploy capital into structurally supported market segments including well-located logistics, office and living properties, with Hines’ skillset of value creation expertise enabling us to drive significant improvements in the portfolio’s ESG credentials and operational performance.”
Alex Knapp, CIO for Europe at Hines, said: “The Hines European Real Estate Partners series has a track record of sustainable and income-accretive asset management. Following the success of previous fundraising rounds, this latest raise in a challenging macroeconomic context is a testament to the series’ reputation among institutional investors for strong returns.”
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