Danish teachers’ pension fund Lærernes Pension has backed the value-add Hines European Value Fund 3 (HEVF 3) fund with a €75m commitment.

HEVF 3 fund – which raised over €900m from investors at its first closing – will target “high conviction thematic investment into tactical opportunities” for value creation, supported by fundamental trends and capital markets inefficiencies, the fund’s manager Hines said.

The fund has already secured control of two separate deals in the logistics and residential sectors, the manager said.

Tobias Friis, senior portfolio manager at Lærernes Pension, said: “We are excited to begin a new partnership with Hines, with whom we share a passion for sustainable investments in the commercial real estate sector.

“We believe this is a great opportunity to work with a globally recognised real estate specialist manager to help address the dramatic structural shifts within commercial real estate across Europe following the impacts of Covid-19 and at the same time provide our members with good financial returns.”

Helle Ærendahl Heldbo, head of alternatives at Lærernes Pension, said: “With our investment in the Hines European Value Fund 3, we hope to help drive the climate agenda through collaboration with Hines, as a long-term investor in forestry we find it interesting that Hines is on the forefront of showing that mass timber is a viable construction material to be utilised by the industry.

“We believe an investment in this fund will help positively impact the sustainable redevelopment of real estate and new construction. ESG continues to be a growing area of focus for the industry, and we will continue to pursue our goals through this new partnership on a pan-European-wide basis.”

Paul White, fund manager for the HEVF Series, said: “Lærernes Pension’s commitment to HEVF 3 is indicative of our growing presence in the Nordics and our aspirations for continued investment in Denmark.

”Hines’ boots-on-the-ground approach allows us to develop strong local relationships and work with local stakeholders to deliver meaningful development projects which meet ambitious ESG goals while seeking strong returns for investors.”

The HEVF 3 fund is the latest in Hines European Value Fund series and complements the manager’s open-ended core-plus Hines European Property Partners and Hines European Core Fund.

”HEVF 3 will leverage this same approach, continuing the series’ success and evolving in line with the ever-changing real estate investment landscape across Europe,” White said.

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