Real estate firm Hines has raised 800 million euros ($846 million) for a new European property fund, according to a statement.
The Houston, Texas, based investor and developer launched its Hines European Property Partners vehicle three 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 U.S. and Asia, which has been realized through this exceptional equity raising in its first phase,” Hines Chief Investment Officer for Europe Alex Knapp said.
The fund, which is managed by Jorge Duarte, will invest in warehouses, residential, office, student and senior housing. Hines launched similar vehicles in the U.S. and Asia last year which have so far attracted a combined $2.5 billion in capital.
