Hines overcame a difficult fundraising environment to close its third European value fund above target, with €1.6 bn of equity commitments. The global investment manager’s Paul White, fund manager of Hines European Real Estate Partners III, said ‘it had not been a walk in the park’, but despite challenging economic conditions, a further €620 mln of capital was committed in 2023. ‘I have pitched to about 250 investors, resulting in more reluctant negative outcomes than usual’, he said. ‘Because at the level above them, there is currently no allocation to invest at all, let alone in real estate.’ At final close, the total number of investors was 35, which White said was a well-balanced mix of existing and new investors from all over the world. The fund targets 12% - 14% returns and 60% leverage and can invest in the EU, UK and Norway. It can also take on development for the first time in this fund series.
For HEREP III, White’s team is prioritising three key sectors: purpose-built student accommodation, distribution logistics (including developing new product), and highly sustainable office spaces in prime locations. Hines’ 866-strong team managed €27.6 bn of European real estate from 17 offices, as of 30 June 2023.
The HEREP fund series has been renamed from its former branding as the Hines European Value Funds (HEVF).
Source: https://propertyeu.info/Nieuws/Hines-hauls-in-1-6b-for-third-value-add-fund-despite-tough-fundraising-climate/a9db2552-13b1-4bf6-a474-367f3ca96516, on 7.12.2023.