Hines raises another $600M for CRE investment fund

Houston-based firm so far closed on six investments

Adriana de Alcantara, Senior Managing Director, Fund Manager Hines US Property Partners (HUSPP), Hines (Hines, iStock)
Adriana de Alcantara, Senior Managing Director, Fund Manager Hines US Property Partners (HUSPP), Hines (Hines, iStock)

Houston-based real estate investment firm Hines has locked in another $600 million in fundraising for the company’s commercial real estate investment vehicle.

Hines announced on Tuesday the additional equity for Hines U.S. Property Partners. The fundraising brings the fund’s aggregate equity commitments to $1.4 billion, while the combined equity of the fund has $2.3 billion in total investment capacity.

The firm has so far closed on six investments totaling about $600 million through the fund, including industrial, multifamily, mixed-use, and office properties. The portfolio is weighted towards industrial and multifamily properties.

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“We are very excited by the momentum we have seen since the fund’s launch last July,” said fund manager Adriana de Alcantara. “These opportunities have demonstrated the strength of our highly local platform which enables us to acquire off market deals in dynamic locations in Los Angeles, Seattle, Austin, and Minneapolis.”

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The firm plans to use the remaining capital in the next year. Other property sectors being targeted by the fund include self-storage and life sciences. The fund is open-ended and will continue to raise capital.

The fund’s investor base includes 20 institutional investors from the United States, Europe and Asia, consisting of public and private pension plans, insurance companies, high net worth individuals, banks, non-profit organizations and family offices.

Hines had raised $625 million for the fund as of August, when it projected it would hit $1 billion raised by the end of September. The fund — which includes an initial $100 million investment from Hines — set a goal of raising another $1 billion annually.

The firm also recently launched the Hines U.S. Property Recovery Fund, which was looking to raise $1 billion in equity to invest in properties in the 30 largest cities in the country. The fund is targeting a range of undervalued properties, including residential, office, student housing and self-storage.

As of last month, the fund had reportedly hit commitments of $590 million. Two logistics sites in California were acquired through the fund for $186 million.

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