Hines has raised $600m of equity for its core-plus US Property Partners fund, with capital from a range of European investors, including the Greater Manchester Pension Fund.
The firm said the raise signalled the “increasing appeal of core-plus returns in the US real estate market from European institutional investors”.
The equity raise takes the fund’s aggregate investor commitments to $1.4bn (£1bn), with more than $2.3bn in total investment capacity. There are 20 institutional investors, including US, European and Asian public and private pension plans, insurance companies, high net-worth individuals, banks, non-profit organisations and family offices.
So far the open-ended fund has closed on six investments totalling around $600m across the industrial, multifamily, mixed-use, and office sectors. The portfolio is more than two-thirds weighted towards industrial and multi-family.
The remaining capital will be deployed over the next year. The fund also aims to invest in alternative sectors such as life sciences and self-storage, to build a “diversified portfolio that targets a balance of yield and growth”.
Adriana de Alcantara, HUSPP fund manager at Hines, said: “These opportunities have demonstrated the strength of our highly local platform, which enables us to acquire off-market deals in dynamic locations in Los Angeles, Seattle, Austin and Minneapolis.”
HUSPP targets assets in submarkets across the US. Its strategy is to “buy, build and manage to core”, seeking to maximise value at asset level through active management and undertaking developments to create “next-generation” properties.
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