(LONDON) – Hines, a global real estate investment, development, and property management company, has successfully 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 raised over €1.6 billion of equity commitments, exceeding its target of €1.5 billion. Over €620m in capital was committed in 2023 despite challenging economic conditions and a difficult fundraising environment.
The total number of investors in the fund is now 35, with a well-balanced mix of existing and new investors, in addition to Hines' co-investment. Most investors are major institutional pension funds and insurance firms from all over the world, demonstrating their ongoing confidence in Hines’ ability to find great investment opportunities and deliver strong returns.
Since its inception HEVF 3 has allocated over €300 million of equity to assemble an initial portfolio of four assets in three markets. The investment period for the fund is expected to continue until mid-2026 and will prioritize three key sectors: purpose-built student accommodation (PBSA), distribution logistics and highly sustainable office spaces in prime locations. Hines believes these sectors have significant unmet demand and present opportunities for ongoing rental growth.
As of today, HEVF 3 will be rebranded as 'Hines European Real Estate Partners III' (HEREP III). This change is part of an effort to clearly communicate Hines' suite of funds to investors across different geographies and risk profiles. The HEREP Fund series complements the Hines European Core Fund (HECF) and Hines European Property Partners (HEPP), offering a comprehensive range of investment products across the risk spectrum in high-growth European markets.
Paul White, Senior Managing Director and Fund Manager of the HEREP (previously HEVF) series at Hines, commented:
“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.”
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About Hines
Hines is a global real estate investment, development and property manager. The firm was founded by Gerald D. Hines in 1957 and now operates in 30 countries. We manage nearly €87.1B¹ in high-performing assets across residential, logistics, retail, office, and mixed-use strategies. Our local teams serve 790 properties totaling nearly 25 million square meters globally. We are committed to a net zero carbon target by 2040 without buying offsets. To learn more about Hines, visit www.hines.com and follow @Hines on social media.
¹Includes both the global Hines organization and RIA AUM as of June 30, 2023.
About the Hines European Real Estate Partners Fund III (previously HEVF 3)
HEREP III is a euro-denominated, Luxembourg-based close-ended investment fund. Managed by Hines, its objective is to acquire a diversified portfolio of prime value-add commercial and residential real estate investments throughout the major European markets on behalf of institutional investors. The fund has broad flexibility across all sectors, and the portfolio is largely focused deploying thematic investment themes across office, logistics and residential usages and creating value through active interventions leveraging Hines deep vertically integrated platform and market leading ESG credentials. HEREP III follows its predecessors HEVF 1 (2018) and HEVF 2 (2021) in continuing the flagship HEREP Series for Hines in Europe.