Hines Closes New Euro Fund at $155M

LONDON-Global institutional investors have committed capital totaling euro 120 million (US$155 million) in the first closing on Hines' new Pan-European Core Fund. The London office of the Houston-based real estate developer hopes to generate about euro 1.5 billion (US $1.94 billion) in later closings.

The company says the fund's objective is to generate a sustainable dividend with a leveraged annual net distribution to investors of 5% after costs and fees. The next closing is expected at year end. HECF is a Euro-dominated, Luxembourg-regulated Fonds de Commun de Placement with an indefinite life. The fund targets all European countries, focusing on France, Germany, Italy, Spain and the United Kingdom.

Local Hines in-country teams will handle the fund's investment and asset management strategy with the firm's London/Luxembourg-based fund-management players headed by Andreas Schreurs. "We will continue to raise capital for our worldwide activities, which will include core, value added and development strategies in the US, Europe and Asia," says Hines chairman Gerald D. Hines.

Hines has started 18 geographically diversified investment funds, covering the risk spectrum of core, value-added and opportunistic/development. The firm has co-invested with some of the world's most influential institutional investors with committed equity exceeding $9 billion (US).

The privately owned, international real estate firm's portfolio of projects under way, completed, acquired or managed for third parties includes almost 900 properties representing more than 345 million sf of office, residential, mixed-use, industrial, hotel, medical and sports facilities, along with large, master-planned communities and land developments. The company has offices in 68 US cities and 14 foreign countries. The firm controls assets valued at about $12.5 billion.