Hines has announced an additional $600 million equity raising for its open-ended US property fund, Hines US Property Partners (HUSPP), bringing total aggregate investor commitments to $1.4 billion.
Hines said the combined equity raised gives the Fund over $2.3 billion in total investment capacity.
Equity has come from a range of European pension funds. In particular, the Greater Manchester Pension Fund (GMPF), one of the UK’s largest Local Government pension schemes, has committed to the fund.
To date, HUSPP has closed on six investments totaling approximately $600 million in investment volume spanning all four major property types: industrial, multifamily, mixed-use, and office.
In line with the Fund’s diversification objectives, the current portfolio is more than two-thirds weighted toward the industrial and multifamily sectors. The Fund team expects to deploy the remaining capital over the next 12 months.
“We are very excited by the momentum we have seen since the fund’s launch last July,” said Adriana de Alcantara, HUSPP fund manager at Hines. “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 is an open-ended, diversified fund targeting next-generation assets in top-performing submarkets throughout the United States. The fund’s strategy is to “buy, build, and manage to core” through research-driven portfolio construction, smarter submarket and sector selection, vertically integrated value creation, and product designed for future demand. HUSPP expects to continue to invest across the living, industrial, office and mixed-use sectors, as well as select alternative sectors, such as life sciences, self-storage, and others, to construct a diversified portfolio that targets a balance of yield and growth.
HUSPP has secured a diverse investor base including 20 institutional investors comprised of U.S., European and Asian public and private pension plans, insurance companies, high net-worth individuals, banks, non-profit organizations, and family offices. As an open-ended fund, HUSPP is expected to continuously raise capital and will become a largescale, multi-billion-dollar institutional fund targeting core plus returns in the U.S. market.
With additional deals in exclusivity and more in the pipeline, the fund’s strategy will continue to emphasize Hines’ top-down proprietary research and leverage Hines’ on-the-ground execution platform to create and hold what Hines views as the core assets of the future. The fund will seek to maximize value at the asset-level through active management and undertake select development to create next-generation assets catering to future tenant demand.