Hines has announced the first close of Hines European Property Partners (HEPP), its open-ended core-plus real estate fund, with €800 million of equity commitments.
Launched in early 2022, the fund has attracted a wide range of both new and existing investors from the U.S and Europe.
Hines said the fund aims to attract €1bn in investor equity in the first 12 months from investors around the world.
The fund is seeking to acquire and develop sustainable assets across a range of sectors including logistics, office, living – residential, student, and senior housing.
The fund has already secured exclusivity on two separate deals in the living and office sectors.
HEPP will complement Hines’ existing European funds, the Hines European Core Fund (HECF), the firm’s open-ended core flagship vehicle, and the Hines European Value Fund (HEVF) series, its close-ended value add counterpart.
Alex Knapp, chief investment officer for Europe, at Hines, commented: “We had a strong conviction that this fund would mirror the appeal of its global sister core-plus funds in the U.S and Asia, which has been realized through this exceptional equity raising in its first phase. With growing momentum, HEPP is expected to exceed our target of €1 billion in investor equity by the end of this year from investors seeking diversified global exposure.”
Jorge Duarte, fund manager of HEPP at Hines, said: “As anticipated, we are experiencing significant investor appetite for this fund. The macro trends such as ESG prioritization, technological advancement, and generational shifts are accelerating obsolescence across all sectors which is creating opportunities for core plus investing – there are a limited number of vehicles in this space. We believe our local presence across the major European markets and vertically integrated model means we are well placed to meet and capitalize on this demand.”
