Hines’ European core-plus fund has raised €800m (£682m) at its first close.
The Hines European Property Partners fund is the asset manager’s new open-ended investment vehicle, led by Jorge Duarte.
It is on track to meet its first-year target of €1bn, attracting investment from US and European investors.
Duarte, who joined from Barings to take up the role, said: “The macro trends such as ESG prioritisation, technological advancement and generational shifts are accelerating obsolescence across all sectors, which is creating opportunities for core-plus investing – there are a limited number of vehicles in this space.
“We believe our local presence across the major European markets and vertically integrated model means we are well placed to meet and capitalise on this demand.”
Bosses at Hines hope to use the fund to buy and develop sustainable real estate assets across the logistics, office and residential sectors.
HEPP sits alongside two global sister funds which seek to do the same thing in the US and Asia, both of which launched in 2021. Those funds have already secured about $2.5bn in combined commitments.
Alex Knapp, Hines’ chief investment officer for Europe, said: “We had a strong conviction that this fund would mirror the appeal of its global sister core-plus funds in the US and Asia, which has been realised through this exceptional equity raising in its first phase.
“With growing momentum, HEPP is expected to exceed our target of €1bn in investor equity by the end of this year from investors seeking diversified global exposure.”
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