UK regional office investor Hillview Real Estate has announced the launch of its third UK commercial real estate fund, Hillview Partners Property Fund III, with a target size of £300 mln (€332 mln).
The value-add fund aims to secure equity commitments of £150 mln from investors. Using leverage, it aims to deliver a total net return of 12% per annum to investors, by investing £300 mln in well-located, multi-tenanted, institutional-quality properties in key cities and regions with favourable supply-demand dynamics.
Individual investments are expected to range between £10 mln and £25 mln and to provide scope for value enhancement through active asset management, including repositioning of properties and restructuring of leases.
The fund launch 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, we believe 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.’
He added: ‘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.’
The company said that it plans to announce details of its first acquisition soon.
