Hines European Value Fund 3 advances closer to €1.5b target

Hines has captured €900 million ($962 million) in a first closing of its new value-add fund, Hines European Value Fund 3 (HEVF 3).

The capital was raised from a group of 15 institutional investors — predominantly existing investors in the successful series. Their subscriptions amounted to around 60 percent of the €1.5 billion ($1.6 billion) targeted for HEVF 3. Additional closings are expected through 2022 and possibly into early 2023.

Hines expects the European investor group in this first closing to be joined by new and existing investors from the United States, Asia and the Middle East in subsequent closings.

HEVF 3 will diversify across markets, sectors and risk profiles. The fund has already secured control of two separate deals in the logistics and residential sectors. Upon closing, HEVF 3 would be the largest fund in the fund series.

“The last two years have changed what real estate stock is needed; where; and with what characteristics,”