Hines exceeds €1.5bn fundraising target for third European value fund

Hines exceeds €1.5bn fundraising target for third European value fund

Global real estate investment firm Hines has exceeded its fundraising target of €1.5 billion in the final closing of the Hines European Value Fund 3 (HEVF 3), raising over €1.6 billion in equity commitments.

Over €620m in capital was committed in 2023 despite challenging economic conditions and a difficult fundraising environment.

Since its inception HEVF 3 has allocated over €300 million of equity to assemble an initial portfolio of four assets in three markets. The investment period for the fund is expected to continue until mid-2026 and will prioritize three key sectors: purpose-built student accommodation (PBSA), distribution logistics and highly sustainable office spaces in prime locations. Hines believes these sectors have significant unmet demand and present opportunities for ongoing rental growth.

As of today, HEVF 3 will be rebranded as ‘Hines European Real Estate Partners III’ (HEREP III). This change is part of an effort to clearly communicate Hines’ suite of funds to investors across different geographies and risk profiles. The HEREP Fund series complements the Hines European Core Fund (HECF) and Hines European Property Partners (HEPP), offering a comprehensive range of investment products across the risk spectrum in high-growth European markets.

Paul White, Senior Managing Director and Fund Manager of the HEREP (previously HEVF) series at Hines, commented: “With HEREP III now closed for equity subscriptions and almost 20% allocated into highly attractive value-add opportunities across Europe, we are fully focusing our attention to sourcing additional opportunities to grow and diversify HEREP III’s portfolio. The fund aims to deploy capital into structurally supported market segments including well-located logistics, office and living properties, with Hines’ skillset of value creation expertise enabling us to drive significant improvements in the portfolio’s ESG credentials and operational performance.”

Alex Knapp, Chief Investment Officer for Europe at Hines, added: “The Hines European Real Estate Partners series has a track record of sustainable and income-accretive asset management. Following the success of previous fundraising rounds, this latest raise in a challenging macroeconomic context is testament to the series’ reputation among institutional investors for strong returns.”

Click here to receive CRE Herald’s weekly newsletter, news alerts and insights!