Global real estate firm Hines has revealed the details of its third European value-add fund, expected to be its largest closed-end fund to date in its growing flagship series of Europe-focused value-add vehicles.
Hines European Value Fund 3 (HEVF 3), which will target equity commitments of approximately €1.5 bn, will build on previous funds with a focus on "high conviction thematic investment into tactical opportunities for value creation, supported by fundamental trends and capital markets inefficiencies", according to the firm.
Hines will adopt an approach of confining investment of HEVF 3 to what it considers to be the most liquid, institutional set of primary markets in Europe, and applying its in-house skillset to actively create value at the asset level. The assets are likely to be diversified by markets, sectors and risk profiles, with dominant allocations to logistics and office.
The first closing of HEVF 3 is expected to take place in early-Q2, with further commitments to follow throughout 2022.
Paul White, fund manager for the HEVF Series, said: 'The pace of fund raising and execution of investments in our first two European value-add funds has led to considerable anticipation ahead of the launch of HEVF 3.
'Following the successful formula for thematic investment strategies and off-market origination of its predecessors, this third fund is anticipated to be the largest to date in terms of equity commitments, and also intends to set a new benchmark of aspiration for ESG performance.
'We will really push to leap ahead of the market in this critical area. We also believe the strength of our local teams in each country we operate in, provides us with an unusually strong competitive advantage today.'
HEVF 3 will also pursue sustainability credentials, including GRESB. HEVF 2 was awarded five green stars out of five and lauded with several accolades such as the Overall Global Sector Sustainability Leader last year.
In Europe, Hines continues to expand, with approximately 650 employees across 13 countries in the region and a total assets under management of €21.7 bn.
Hines marked its 65th anniversary in February this year with the appointment of Laura Hines-Pierce as co-CEO, one of the few female CEOs in real estate globally.
