Global real estate firm Hines has raised €800 million of equity commitments for its open-ended core-plus fund, otherwise known as Hines European Property Partners (HEPP).
The fund, which launched three months ago, has attracted investors across Europe and the US in its first closing. The strategy is not fully subscribed yet, and Hines plans to attract a further €200 million in the fund’s first year of operation.
Hines’ two other strategies, described by the firm as “global sister funds” to HEPP, have already attracted over $2.5 billion between them – the Hines US Property Partners (HUSPP) and Hines Asia Property Partners (HAPP) strategies. Both launched in 2021.
Like its predecessors, HEPP’s investment objective is to acquire and develop sustainable assets across various sectors, including logistics, office, living, and residential, student and senior housing. It has already secured exclusivity in both the living and office sectors.
The fund will combine the firm’s proprietary framework and execution platform to create an income-generating portfolio. HEPP will also pursue a GRESB rating to underscore ESG credentials, something fund manager Jorge Duarte said will add to its popularity.
“The macro trends such as ESG prioritisation, 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,” he said.
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