Hines has secured more than €1bn of equity commitments for its Hines European Property Partners (HEPP) fund.
The milestone was reached following an acceleration of commitments from existing and new partners over the last quarter.
Hines’ European flagship core-plus fund focuses on “good quality, substantially stabilised assets” in key European markets with growth potential. The fund targets industrial, living, retail and office sector assets, in addition to emerging sectors, such as data centres and senior living.
Jorge Duarte, fund manager at Hines, said: “We have taken advantage of the shift in market conditions in Europe and tactically deployed significant capital over the last 12 months. Investors can see how the portfolio has been assembled so far, and that coming into the fund now means not only a short path to deployment but also gaining exposure to what are expected to be the best performing assets classes over the coming years. They also recognise what are likely to be the best investment conditions for a core plus real estate fund since the ’great financial crisis’ in 2008.
“We see no sign of this investor demand for the fund abating over the next 12 months. Our fundamental approach of acquiring attractively priced, income producing assets throughout Europe, where we can seek to add value over time through Hines’ proactive asset management and a focus on ESG, makes HEPP well positioned to outperform in current market conditions, which we expect to become the new normal.”
