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Hines Raises More Than $944 Million for Its European Value Fund

Exceeds Equity Target by More Than 40%
September 13, 2018
Hines recently completed the acquisition of Købmagergade 44-46/50, a five-story, mixed-use property in central Copenhagen on behalf of its latest Hines European Value Fund. The buildings were formerly owned by The Danish Building and Property Agency (Bygningsstyrelsen) and occupied by University of Copenhagen. The purchase price is $134.5 million.

Developer Hines said it exceeded its original capital raising target by more than 40 percent as major investors back its Hines European Value Fund to the tune of $944 million in equity commitments as the Houston-based company continus to raise real estate investment funds on a global scale.

A primarily European group of 16 limited partners, including German, Italian, Norwegian, Spanish, French and Finnish firms, contributed equity to the fund alongside Hines as a co-investor and sponsor.

The limited partner group includes subscriptions from Allianz, Intesa Sanpaolo Vita, Nordrheinische Ärzteversorgung (NAEV), Kirchliche Versorgungskassen KZVK / VKPB, OP Real Estate and the Finnish Church Pension Fund, Formuesforvaltning, Kommunaler
Versorgungsverband Thüringen (KVT), Wealthcap and other German and Asian pension fund and insurance group clients.

Hines launched the Luxembourg-based investment fund in July 2017 with the objective of acquiring a portfolio of commercial properties in key markets that could benefit from refurbishment throughout Europe on behalf of its institutional investor group. Hines Fund Manager Paul White recently appointed Ruth Jackson to serve as the fund's portfolio manager.

HEVF is the Texas-based firm's flagship value add fund in Europe, with a geographic mandate across the European Union plus Norway, with a flexible investment scope that covers office, retail, logistics, residential and mixed-use properties primarily within major European markets.

In the first 12 months following the fund’s initial closing, it committed about $262 million of equity to the fund’s first three investments in Stuttgart, Copenhagen and Barcelona, along with an undisclosed fourth acquisition. Hines, which said it has $21.9 billion in assets under management and 386 Europe-based employees, will be responsible for sourcing value-add acquisitions for the fund.

Lars Huber, chief executive of Hines Europe, said: "With local teams in 11 countries and 17 offices, we have grown our European platform by strengthening our presence on the ground in strategic markets across the region. We have invested in over 50 European cities with strong diversification across all sectors and the full risk spectrum. Hines has established itself as one of the leading players in European real estate, which is testimony to the in-depth strength of our experienced team across the continent."

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