Hines’ new €1.5bn value add fund is largest in HEVF series

Hines is planning the launch of what it expects to be its largest closed-end fund in its series of value-add funds in Europe and will be targeting equity commitments of about €1.5 billion.

The Hines European Value Fund 3 (HEVF 3) will build a portfolio diverse in terms of markets, sectors and risk profiles, but it is expected to be dominated by logistics buildings and offices.

Hines said the fund will apply the firm’s principles of value-add investing – “high conviction thematic investment into tactical opportunities for value creation, supported by fundamental trends and capital markets inefficiencies”.

And the firm said HEVF 3 will be invested in the most liquid, institutional set of primary markets in Europe.

HEVF 3’s first closing is slated for early-Q2, 2022, although further commitments should follow throughout the year, Hines said. 

Sustainability will also be a priority and HEVF 3 will pursue sustainability credentials and embrace ESG benchmark GRESB.

“The pace of fund raising and execution of investments in our first two European value-add funds has led to considerable anticipation ahead of the launch of HEVF 3,” said Paul White, fund manager for the HEVF Series.

White said the fund, “also intends to set a new benchmark of aspiration for ESG performance. We will really push to leap ahead of the market in this critical area.”