Global real estate firm Hines has announced that its latest fund, Hines European Property Partners (HEPP), has secured €800 mln of equity commitments from investors at its first closing, less than three months after the fund’s launch.
The fund has attracted a wide range of both new and existing investors, from the US and Europe. The fund aims to attract €1 bn in investor equity in the first 12 months from investors around the world.
Launched in early 2022, HEPP is led by Jorge Duarte, who joined Hines from Barings to take up the role of fund manager.
Said Duarte: 'As anticipated, we are experiencing significant investor appetite for this fund.
'The macro trends such as ESG prioritisation, technological advancement, and generational shifts are accelerating obsolescence across all sectors which is creating opportunities for core plus investing - there are a limited number of vehicles in this space.
'We believe our local presence across the major European markets and vertically integrated model means we are well placed to meet and capitalise on this demand.'
The fund is seeking to acquire and develop sustainable assets across a range of sectors including logistics, office, living – residential, student, and senior housing.
HEPP will leverage Hines’ expertise and presence in 17 offices across Europe to identify investment opportunities in Europe’s most dynamic urban centres and gateway cities. The fund has already secured exclusivity on two separate deals in the living and office sectors.
The fund combines Hines’ proprietary research framework with its execution platform intending to create a portfolio of high-quality income producing assets. The strategy will seek to maximise value at the asset-level through active management while undertaking select developments to hold.
HEPP sits alongside its global sister funds, Hines US Property Partners (HUSPP) and Hines Asia Property Partners (HAPP), all regionally targeted, diversified, open-ended core-plus funds using the same combination of strong local teams and tailored investment strategies to suit relevant sub-markets.
HEPP will complement Hines’ existing European funds, the Hines European Core Fund (HECF), the firm’s open-ended core flagship vehicle, and the Hines European Value Fund (HEVF) series, its close-ended value add counterpart.
Both HECF and Hines European Value Fund 2 (HEVF 2), the latter now closed to new investors, have market leading ESG credentials as recognised by GRESB. HEPP intends to pursue a GRESB rating to underscore its ESG credentials.
Alex Knapp, chief investment officer for Europe, at Hines, commented: 'We had a strong conviction that this fund would mirror the appeal of its global sister core plus funds in the US and Asia, which has been realised through this exceptional equity raising in its first phase.
'With growing momentum, HEPP is expected to exceed our target of €1 bn in investor equity by the end of this year from investors seeking diversified global exposure.'
