Hines has raised $108 million (£78.5 million) from Israeli investors for its European Value Fund 2 (HEVF 2), one of its flagship European real estate funds. Menora Mivtachim, one of Israel’s largest insurance companies, will invest $88 million in the fund and a further $20 million will come from private investors based in Israel.
Menora manages over $80 billion of assets. It is the largest general insurance company in Israel and manager of the country’s biggest pension fund and it has made the commitment to HEVF 2 because it is seeking to increase its real estate exposure in Europe.
It is the first capital raised from Israel by Hines, as the US group seeks to strengthen links with institutional investors and private offices in Israel for its global real estate funds as demand is rising for flagship diversified real estate funds in Europe, the US and Asia.
“This is a very important milestone for Hines”, said Alex Knapp, chief investment officer, Europe, Hines. “We are very pleased to have established a strong partnership with Menora, who understand the value of our global profile, our investment management platform, our deep knowledge of real estate, and our on the ground presence in the markets we invest in. They share our vision and understand the opportunity in Europe’s gateway and growth cities”.
Hines manages over over $81 billion of real estate investments around the world. In Europe, the group acts as investment manager for over $25.7 billion of investments, including its two funds, the HEVF 2 and the Hines pan-European Core Fund (HECF).
“This has been an exceptionally strong year for HEVF 2, with multiple assets acquired and a successful shift towards logistics and residential, where we have been able to secure excellent deals despite a very active market and strong investor demand”, said Paul White, senior managing director and HEVF 2 fund manager, Hines.
HEVF 1, which was launched in 2017, focused on core plus and value-add office investments, while HEVF 2, launched in 2019, is most active in the logistics, office and living sectors. It currently has ten projects across France, Germany, Italy, the Netherlands, UK and Spain and is over 70% allocated.
“The outlook for global real estate is very positive, with unprecedented investor demand, with long-term shifts towards residential for rent, logistics powered by e-commerce, and sustainability, that provide opportunities to create value”, said Knapp.