Hines has surpassed its fundraising goal in the final closing of the Hines European Value Fund 3 (HEVF 3).
Since its launch in mid-2022, the fund has raised more than €1.6bn of equity commitments – exceeding its target of €1.5bn – with more than €620m in capital committed this year despite the challenging fundraising environment.
Since its inception, HEVF 3 has allocated more than €300m of equity to build an initial portfolio of four assets in three markets and the investment period for the fund is expected to continue until mid-2026.
HEVF 3 will prioritise three key sectors: purpose-built student accommodation (PBSA), distribution logistics and highly sustainable office spaces in prime locations. Hines has now rebranded HEVF 3 as ‘Hines European Real Estate Partners III’ (HEREP III) as part of an effort to communicate the firm’s suite of funds to investors across different geographies and risk profiles.
Paul White, senior managing director and fund manager of the HEREP series at Hines, said: “With HEREP III now closed for equity subscriptions and almost 20% allocated into highly attractive value-add opportunities across Europe, we are fully focusing our attention to sourcing additional opportunities to grow and diversify HEREP III’s portfolio. The fund aims to deploy capital into structurally supported market segments including well-located logistics, office and living properties, with Hines’ skillset of value creation expertise enabling us to drive significant improvements in the portfolio’s ESG credentials and operational performance.”
Alex Knapp, chief investment officer for Europe at Hines, added: “The Hines European Real Estate Partners series has a track record of sustainable and income-accretive asset management. Following the success of previous fundraising rounds, this latest raise in a challenging macroeconomic context is testament to the series’ reputation among institutional investors for strong returns.”
