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Hines targets USD1.5bn for third value-add fund

Global real estate firm Hines is set to launch Hines European Value Fund 3 (HEVF 3), which is expected to be its largest closed-end fund to date in its growing flagship series of value-add funds in Europe.

The fund is targeting equity commitments of approximately EUR1.5 billion.

HEVF 3 intends to build on Hines’ principles of value-add investing applied across the fund series so far – high conviction thematic investment into tactical opportunities for value creation, supported by fundamental trends and capital markets inefficiencies. Hines will adopt an approach of confining investment of HEVF 3 to what it considers to be the most liquid, institutional set of primary markets in Europe, and applying its in-house real estate skillset to actively create value at the asset level.

HEVF 3 will seek to build a portfolio diversified by markets, sectors and risk profiles, and is expected to have dominant allocations to logistics and office. The first closing of HEVF 3 is expected to take place in early-Q2, with further commitments to follow throughout 2022. 

HEVF 3 will also pursue market leading sustainability credentials, embracing GRESB, the leading ESG benchmark for real estate and infrastructure investments across the world.

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