Property investor Hines has raised €637m (£546m) at the first close of its second European value-add fund, with investments including a mixed-use office and retail development in London’s West End.
The company is eyeing a €1.25bn target for Hines European Value Fund 2, which it launched in September 2019 and which targets a net IRR of 11-13%.
Including leverage, the company expects the office-focused fund to have purchasing power of close to €3bn. Thirteen investors had committed to the fund by first close.
Hines has entered exclusivity on a London acquisition, and has also struck deals for an office development in Munich and a residential scheme in Madrid. The equity value of those three deals is €300m.
Hines’ first value-add fund secured €721m between mid-2017 and mid-2018 and has since been invested in nine deals in the UK, Germany, Denmark, Spain, Italy and Poland.
Paul White, fund manager for both of Hines’s value-add funds, said: “We expect that HEVF 2 will be almost twice the size of HEVF 1, to reflect the strength of the opportunity pipeline the Hines platform is able to originate, and it is anticipated to be Hines Europe’s largest closed-ended fund to date.”
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