Hines raises US$846m for European real estate bets

REAL estate firm Hines has raised 800 million euros (S$1.17 billion) for a new European property fund, according to a statement on Monday (May 9).

The Houston, Texas, based investor and developer launched its Hines European Property Partners vehicle 3 months ago and aims to collect a total of 1 billion euros in its first year, the statement said. The fund has no set lifespan, allowing it to hold assets long-term, targeting so called core-plus real estate deals.

Hines is one of several alternative asset managers including Blackstone Inc. and KKR and Co that have launched open-ended core-plus European real estate funds as they seek to tap new pools of fee income. Core-plus funds target good-quality but not premium property. The move into the area by private equity is a diversification from the opportunistic funds that target the riskiest bets and highest returns for which the private equity firms are best known.

“We had a strong conviction that this fund would mirror the appeal of its global sister core plus funds in the US and Asia, which has been realised through this exceptional equity raising in its first phase,” Hines chief investment officer for Europe Alex Knapp said in the statement. 

The fund, which is managed by Jorge Duarte, will invest in warehouses, residential, office, student and senior housing. Hines launched similar vehicles in the US and Asia last year, which have so far attracted a combined US$2.5 billion in capital. 

BLOOMBERG