Hines has raised an additional €305m (£261.7m) from institutional investors for its Hines European Value Fund 3.
The fund has raised more than €1.45bn since its launch in mid-2022, with an initial target of €1.5bn. Final closing is planned for November and its investment period will run until mid-2026.
HEVF 3 has attracted commitments from 30 partners, including major institutional investors, alongside a Hines co-investment.
Of the commitments, 57% were made by existing HEVF series investors. More than €1.8bn of commitments were raised in the first and second HEVF funds in 2018 and 2020.
HEVF 3 recently completed its third investment and has a further four in exclusivity. If all are acquired, it would bring HEVF 3 to around 25% allocated.
The fund is expected to acquire a value-add portfolio across major sectors in primary European markets. A key emphasis of the fund series is proprietary deal origination through Hines’ 17 office teams across Europe.
Paul White, senior managing director and fund manager of the HEVF series, said: “We expect to exceed our original fundraising target of €1.5bn, despite the very challenging market conditions, and we are excited about the potential for HEVF 3.
“We have been patient with our dry powder and very intentionally applied a high threshold of selectivity over the last year, only committing to two investments up to May 2023. We are finally feeling steadier market ground and returning liquidity at appropriately rebased pricing.
“We are convinced we can invest into a generational cycle correction, while post-Covid behaviours and the ESG agenda cut across existing supply and demand patterns. We anticipate this being a productive period for us to use our off-market origination network, our expert knowledge of fundamentals, and our value-creation skillset across the lifecycle of real estate assets to great effect for our investors.”
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