Hines Raises $750M For CRE Fund
The fund’s first purchase is expected to be a multifamily property in Austin, Texas, for more than $100 million.
Real estate investment firm Hines has raised $750 million for a fund targeting next-gen assets in top-performing markets across the US.
The capital raise includes a $100 million investment from Hines and injects the open-ended fund with $1.2 billion in immediate investment capacity, Hines said in a statement announcing the close. Known as Hines US Property Partners, or HUSPP, the fund expects to invest across multifamily, industrial, office, and mixed-use sectors as well as niche sectors like the burgeoning life sciences and self-storage asset classes.
“As real estate continues its transformation into a service, we believe investors are finding increased value to work directly with large scale operators who can bring innovation, flexibility and simplicity for the ultimate customers which are our tenants,” said David Steinbach, Global CIO at Hines in a statement.
The company said HUSPP will “seek to deliver future-proofed, sustainable assets that align with the Hines’ corporate ESG initiative”
Hines’ chief investment officer in the Americas, Alfonso Munk, told Bloomberg that the fund will supplement equity bets with 40% leverage to deliver core-plus annual returns to 9 to 11% after fees.
The fund will initially focus on multifamily, industrial and other property types, said Adriana de Alcantara, its manager. Multifamily real estate, viewed as a “necessity” by Hines, offers growth in markets with favorable demographic trends, while industrial real estate—or warehouses—have significant tailwinds due to increased e-commerce penetration and the scarcity of land near large cities, she said.
The new vehicle’s first purchase is expected to be a multifamily property in Austin, Texas, for more than $100 million, de Alcantara added.