Hines has raised over €1.6 billion for its latest value-added European real estate fund, exceeding its target of €1.5 billion.
The global property manager said its Hines European Value Fund 3 (HEVF3) fund, which is primarily backed by pension funds and insurance companies, has committed more than €300 million to date.
HEVF 3, rebranded as Hines European Real Estate Partners (HEREP) III, was backed by 35 new and existing investors in addition to Hines’ co-investment.
The manager said the fund, which was established in mid-2022, is investing equities to build an initial portfolio of four assets in three markets, primarily student accommodation, distribution logistics and sustainability. It said it expects to continue investing until mid-2026 as it targets available office space. Located in a prime location.
Paul White, Senior Managing Director and HEREP Series Fund Manager at Hines, said: “HEREP III’s share offering has now closed and we remain fully focused on the procurement, with almost 20% allocated to highly attractive value-add opportunities across Europe.”HEREP III’s Further opportunities to grow and diversify your portfolio.
“This fund aims to deploy capital into structurally supported market segments such as well-located logistics, office and residential real estate. , can drive significant improvements in portfolio ESG certification and operational performance.”
Alex Knapp, Hines’ CIO Europe, said: Following successful previous funding rounds, this latest round of funding in difficult macroeconomic conditions confirms the series’ reputation for high returns among institutional investors. ”
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