UK regional office investor Hillview Real Estate is planning to invest £300m (€332m) for its third fund.

The manager is planning to raise £150m for Hillview Partners Property Fund (HPPF) III, a value-add fund which will be investing £300m in multi-tenanted offices using leverage.

The fund aims to deliver a total net return of 12% per annum to investors via value enhancement through active asset management, including repositioning of properties and restructuring of leases.

Hillview said HPPF III continues the value-add strategy which Hillview Real Estate has successfully executed by transacting more than 1.2m sqft across 12 regional cities and follows the recent completion of the investment programme for its Hillview Partners Property Fund II.

Nadav Livni, founder of Hillview Group and fund manager of Hillview Real Estate, said despite the challenging investment environment, the company believes the launch of HPPF III is at an opportune time owing principally to the government’s strong commitment to wiping out regional inequality through its “levelling-up” agenda.

“Our analysis confirms that the supply of new regional office space has been limited ever since the global financial crisis of 2008 and is likely to be even more so in the wake of Covid-19.

“Occupational demand will be driven by organic growth from local occupiers as well as corporates recognising the benefits of north-shoring.”

Livni said the fund has a strong acquisition pipeline of opportunities at a “dislocation to fundamental value and plan to announce details of our first acquisition soon”.

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