Hines will soon launch its third European value fund.
The Hines European Value Fund 3 is expected to be its largest closed-end value-add fund to date, targeting equity commitments of approximately €1.5bn (£1.25bn).
The fund will seek to build on Hines’ success with value-add investing, which it describes as “high-conviction thematic investment into tactical opportunities for value creation”, supported by fundamental trends and capital market inefficiencies. It will build a portfolio diversified by markets, sectors and risk profiles, and is expected to have dominant allocations to logistics and offices.
The first closing of HEVF 3 is expected to take place in early Q2, with further commitments to follow throughout 2022.
HEVF 3 is also committed to pursuing market-leading sustainability credentials, embracing GRESB and building on HEVF 2, which was awarded five green stars out of five and lauded as the Overall Global Sector Sustainability Leader last year.
Hines has continued its expansion in Europe, with approximately 650 employees across 13 countries in the region and a total of €21.7bn AUM.
Paul White, fund manager for the HEVF Series, said: “The pace of fund raising and execution of investments in our first two European value-add funds has led to considerable anticipation ahead of the launch of HEVF 3. This third fund is anticipated to be the largest to date in terms of equity commitments, and also intends to set a new benchmark of aspiration for ESG performance. We will really push to leap ahead of the market in this critical area. We also believe the strength of our local teams in each country we operate in, provides us with an unusually strong competitive advantage today.”
Alex Knapp, CIO for Europe, added: “As we continue the expansion of our European investment platform, this third instalment of our flagship value-add series will once again apply our conviction approach to diversified European portfolio construction.
“Our in-house execution platform spanning 16 local market offices has been tremendously responsive in pipeline generation for our favoured investment themes – with particular success in off-market origination. We look forward to what’s next for our European funds comprising HEVF 3 alongside our Hines European Core Fund and our new Hines European Property Partners core-plus strategy.”
To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews
