Hines has raised US$108 million from Israeli investors for Hines European Value Fund 2 (HEVF 2), one of its European real estate funds.
Menora Mivtachim, one of Israel’s largest insurance companies, will invest $88 million in HEVF 2 alongside a further $20 million from private investors based in Israel.
Founded in 1935 and listed on the Tel Aviv Stock Exchange, Menora is the largest general insurer in Israel and manages owner the largest pension fund in Israel. The group, which manages over $80 billion of assets, has made the commitment to HEVF 2 as it seeks to increase its real estate exposure in Europe.
”The latest capital commitments to HEVF 2 represent the first capital raised from Israel by Hines,” said the company in a press release.
In Europe, Hines acts as investment manager for over $25.7 billion of investments, including its two funds, the HEVF 2, and the Hines pan-European Core Fund (HECF).
The HEVF series invests across Europe’s major real estate sectors. HEVF 1, launched in 2017, focused on core-plus and value add office investments while HEVF 2, launched in 2019, is most active in the logistics, office and living sectors. The fund now has 10 project investments across France, Germany, Italy, The Netherlands, UK, and Spain and with further deals in exclusivity in Europe, is now over 70% allocated.
Alex Knapp, Chief Investment Officer for Europe, at Hines, said: “This is a very important milestone for Hines as we seek to strengthen our relationships with institutional investors and private offices in Israel. The outlook for global real estate is very positive, with unprecedented investor demand, with long-term shifts toward residential for rent, logistics powered by e-commerce, and sustainability, that provide opportunities to create value.
“We are very pleased to have established a strong partnership with Menora, who understand the value of our global profile, our investment management platform, our deep knowledge of real estate, and our on the ground presence in the markets we invest in. They share our vision and understand the opportunity in Europe’s gateway and growth cities.”
Paul White, Senior Managing Director and HEVF 2 Fund Manager, at Hines, said: “This latest significant investment into the fund from a new source continues our successful capital raising for the fund since its launch, and will allow us to complete the transactions in our pipeline. This has been an exceptionally strong year for the fund, with multiple assets acquired and a successful shift toward logistics and residential, where we have been able to secure excellent deals despite a very active market and strong investor demand.”
Nir Moroz, Executive Vice-CEO’ Investment Division, Menora Mivtachim, said: “We joined the investment in light of the extensive experience of Hines in real estate investment. This investment is part of the diversification of the company investment portfolio in order to achieve an excess return at a low risk level.