Hines is on track to exceed its original fund-raising target of €1.5bn for its Hines European Value Fund 3 (HEVF 3) having raised an additional €305m of equity from institutional investors.
The fund has raised more than €1.45bn since its launch in mid-2022 and the final closing of HEVF 3 is planned to take place in November 2023, with the fund’s investment period running until mid-2026.
Hines said despite the challenging capital raising environment it had attracted commitments from 30 limited partners for HEVF 3, including major institutional investors, alongside a Hines co-investment.
Hines added the fund had recently completed its third investment with four more in exclusivity. If all are successfully acquired, these investments would bring HEVF 3 to around 25% allocated.
Paul White, senior managing director and fund manager of the HEVF series, said: “We expect to exceed our original fund-raising target of €1.5bn, despite the very challenging market conditions, and we are excited about the potential for HEVF 3. We have been patient with our dry-powder and very intentionally applied a high threshold of selectivity over the last year, only committing to two investments up to May 2023.
“We are finally feeling steadier market ground and returning liquidity at appropriately re-based pricing. We are convinced we can invest into a generational cycle correction, while post-Covid behaviours and the ESG agenda cut across existing supply and demand patterns.
“We anticipate this being a productive period for us to use our off-market origination network, our expert knowledge of fundamentals, and our value-creation skillset across the lifecycle of real estate assets to great effect for our investors.”
