US-based privately-held developer-investor Hines announced on Wednesday that it has raised $108 mln (€126 mln) from Israeli investors for one of its flagship European real estate funds.
Menora Mivtachim, one of Israel’s largest insurance companies, will invest $88 mln in Hines European Value Fund 2 (HEVF 2) alongside a further $20 mln from private investors based in Israel.
Founded in 1935 and listed on the Tel Aviv Stock Exchange, Menora is the largest general insurer in Israel and manages the largest pension fund in Israel. The group, which manages over $80 bn of assets, has made the commitment to HEVF 2 as it seeks to increase its real estate exposure in Europe.
The latest capital commitments to HEVF 2 represent the first capital raised from Israel by Hines, which is seeking to strengthen links with Israel’s institutional investors and family offices, as demand rises for flagship diversified real estate funds in Europe, the US and Asia.
Hines, which manages over $81 bn of real estate investments around the world, is one of the world’s largest privately held real estate investors and managers, with a presence in 27 countries. In Europe, Hines acts as investment manager for over $25.7 bn of investments, including its two flagship funds, the HEVF 2, and the Hines pan-European Core Fund (HECF).
The HEVF series invests across Europe’s major real estate sectors. HEVF 1, launched in 2017, focused on core-plus and value add office investments while HEVF 2, launched in 2019, is most active in the logistics, office and living sectors. The fund now has 10 project investments across France, Germany, Italy, the Netherlands, UK, and Spain and with further deals in exclusivity in Europe, is now over 70% allocated.
Paul White, senior managing director and HEVF 2 fund manager, at Hines, said: 'This latest significant investment into the fund from a new source continues our successful capital raising for the fund since its launch, and will allow us to complete the transactions in our pipeline. This has been an exceptionally strong year for the fund, with multiple assets acquired and a successful shift toward logistics and residential, where we have been able to secure excellent deals despite a very active market and strong investor demand.'
Nir Moroz, executive vice-CEO of the investment division at Menora Mivtachim, said: 'We joined the investment in light of the extensive experience of Hines in real estate investment. This investment is part of the diversification of the company investment portfolio in order to achieve an excess return at a low risk level.'
