Hines raises €800m for European property fund

Global real estate firm Hines announced that Hines European Property Partners (HEPP), its new diversified, open-ended “core-plus” property fund focused on key European markets, has secured €800 million of equity commitments from investors at its first closing.

Hines said the fund has attracted a wide range of both new and existing investors From the US and Europe.

The fund aims to attract €1bn in investor equity in the first 12 months from investors around the world.

Launched in early 2022, HEPP is led by Jorge Duarte, who joined Hines from Barings to take up the role of fund manager.

The fund is seeking to acquire and develop sustainable assets across a range of sectors including logistics, office, living – residential, student, and senior housing.

Hines oversees investment assets under management valued at $90 billion.

HEPP will leverage Hines’ expertise and presence in 17 offices across Europe to identify investment opportunities in Europe’s most dynamic urban centers and gateway cities.

The fund said it has already secured exclusivity on two separate deals in the living and office sectors.

HEPP sits alongside its global sister funds, Hines US Property Partners (HUSPP) and Hines Asia Property Partners (HAPP).

HUSPP and HAPP, both of which launched in 2021, together with HEPP, have secured $3.5 billion in combined commitments for the open-ended core-plus funds.

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, said: “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.”