Israeli insurer Menora Mivtachim, which seeks to increase its real estate exposure in Europe, has invested $88m (€74m) in the Hines European Value Fund 2 (HEVF2) fund.
Global real estate investment firm Hines said Menora has invested the capital alongside a $20m commitment from private investors in Israel.
Nir Moroz, executive vice-CEO in the investment division at Menora Mivtachim, said: “We joined the investment in light of the extensive experience of Hines in real estate investment.
“This investment is part of the diversification of the company investment portfolio in order to achieve an excess return at a low-risk level.”
Hines said the latest capital commitments to HEVF 2 represent the first capital raised from Israel by Hines, which is “seeking to strengthen links with Israel’s institutional investors and family offices, as demand rises for flagship diversified real estate funds in Europe, the US and Asia”.
The predecessor HEVF 1 fund, launched in 2017, focussed on core-plus and value add office investments while HEVF 2, launched in 2019, is most active in the logistics, office and living sectors.
Hines said HEVF 2 now has 10 project investments across France, Germany, Italy, the Netherlands, UK, and Spain and with further deals in exclusivity in Europe, is now over 70% allocated.
Alex Knapp, CIO for Europe, at Hines, said: “This is a very important milestone for Hines as we seek to strengthen our relationships with institutional investors and private offices in Israel.
“The outlook for global real estate is very positive, with unprecedented investor demand, with long-term shifts toward residential for rent, logistics powered by e-commerce, and sustainability, that provide opportunities to create value.”
Paul White, senior managing director and HEVF 2 fund manager, at Hines, said: “This latest significant investment into the fund from a new source continues our successful capital raising for the fund since its launch, and will allow us to complete the transactions in our pipeline.
“This has been an exceptionally strong year for the fund, with multiple assets acquired and a successful shift toward logistics and residential, where we have been able to secure excellent deals despite a very active market and strong investor demand.”
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