Hines, the global real estate firm, has raised around €900 mln of equity from institutional investors at the first closing of its new value-add fund, Hines European Value Fund 3 (HEVF 3).
In a statement, the company said a group of 15 investors, predominantly existing investors in the fund series, joined this first closing in which their subscriptions amount to 60% of the € 1.5 bn targeted equity commitments Hines is seeking for HEVF 3.
Further closings are expected through 2022, and into early 2023. Hines expects the European investor group in this first closing to be joined by new and existing US, Asian and Middle Eastern investors in subsequent closings.
It complements Hines’ other flagship European funds, the open-ended core-plus Hines European Property Partners (HEPP) and Hines European Core Fund (HECF).
HEVF 3 is following ‘high conviction’ thematic investment into tactical opportunities for value creation. The fund has already secured control of two separate deals in the logistics and residential sectors.
Alex Knapp, CIO – Europe at Hines, said: 'To attract this level of capital to our third value-add fund despite market uncertainty and cloudy macroeconomic conditions is testament to the strength of our team. It means we have raised €2 bn in discretionary equity in the first half of 2022 across our suite of European flagship funds. ‘
He added HECF had secured equity commitments of €300 mln, while its recently launched HEPP core-plus fund raised €800 mln at first close.
Paul White, fund manager for the HEVF Series, said: ‘The last two years have changed what real estate stock is needed; where; and with what characteristics. For a value-add fund with an active strategy like ours, disruption is opportunity. We’re intending to take conviction positions on the best value opportunities in Europe, wherever they migrate to in the current more volatile context. ‘
