International real estate firm Hines has launched the first fund in its tactical series, aimed to redevelop and develop real estate assets to better serve the current market needs. Hines U.S. Property Recovery Fund has a equity raise target of $1 billion by the final close in May 22. The fund has $590 million in equity commitments, resulting in $1.5 billion in buying power.

Operating under the acronym HUSPRF, the closed-end fund will target "tactical" opportunities in the 30 largest metros in the US, seeking both development and redevelopment business plans across a wide variety of asset classes, from the core food groups to niche property types, like student housing, data centers and life science. According to Dan Box, HUSPRF fund manager at Hines, in a statement about the launch, "The ways in which we use real estate have changed drastically over the last 10 years, but the built environment hasn't always kept pace. There's a lot of product that needs to be reimagined and reenergized. In an environment where returns are getting thinner, we believe the right approach is to focus on asset-level value creation and actually boosting net operating incomes rather than just relying on a buy-low, sell-high thesis."

The first fundraise round garnered interest from foreign and domestic institutional investors, including pension funds, financial institutions, family offices, foundations and insurance companies. Hines also secured an incremental $150 million from investors for co-investments alongside the fund.