(TEL AVIV, ISRAEL) – Hines, the international real estate firm, has raised $108 million (USD) from Israeli investors for one of its flagship European real estate funds, the Hines European Value Fund 2 (HEVF 2).
Menora Mivtachim, one of Israel’s largest insurance companies, will invest $88 million (USD) in HEVF 2 alongside a further $20 million (USD) from private investors based in Israel.
Founded in 1935 and listed on the Tel Aviv Stock Exchange, Menora is the largest general insurer in Israel and manages owner the largest pension fund in Israel. The group, which manages over $80 billion of assets, has made the commitment to HEVF 2 as it seeks to increase its real estate exposure in Europe.
The latest capital commitments to HEVF 2 represent the first capital raised from Israel by Hines, which is seeking to strengthen links with Israel’s institutional investors and family offices, as demand rises for flagship diversified real estate funds in Europe, the US and Asia.
Hines, which manages over $81 billion of real estate investments around the world, is one of the world’s largest privately held real estate investors and managers, with a presence in 27 countries. In Europe, Hines acts as investment manager for over $25.7 billion of investments, including its two flagship funds, the HEVF 2, and the Hines pan-European Core Fund (HECF).
The HEVF series invests across Europe’s major real estate sectors. HEVF 1, launched in 2017, focused on core-plus and value add office investments while HEVF 2, launched in 2019, is most active in the logistics, office and living sectors. The fund now has 10 project investments across France, Germany, Italy, The Netherlands, UK, and Spain and with further deals in exclusivity in Europe, is now over 70% allocated.
Alex Knapp, Chief Investment Officer for Europe, at Hines, said: “This is a very important milestone for Hines as we seek to strengthen our relationships with institutional investors and private offices in Israel. The outlook for global real estate is very positive, with unprecedented investor demand, with long-term shifts toward residential for rent, logistics powered by e-commerce, and sustainability, that provide opportunities to create value.
“We are very pleased to have established a strong partnership with Menora, who understand the value of our global profile, our investment management platform, our deep knowledge of real estate, and our on the ground presence in the markets we invest in. They share our vision and understand the opportunity in Europe’s gateway and growth cities.”
Paul White, Senior Managing Director and HEVF 2 Fund Manager, at Hines, said: “This latest significant investment into the fund from a new source continues our successful capital raising for the fund since its launch, and will allow us to complete the transactions in our pipeline. This has been an exceptionally strong year for the fund, with multiple assets acquired and a successful shift toward logistics and residential, where we have been able to secure excellent deals despite a very active market and strong investor demand.”
Nir Moroz, Executive Vice-CEO’ Investment Division, Menora Mivtachim, said: “We joined the investment in light of the extensive experience of Hines in real estate investment. This investment is part of the diversification of the company investment portfolio in order to achieve an excess return at a low-risk level.
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 240 cities in 27 countries. Hines oversees a portfolio of assets under management valued at approximately $160.9 billion¹, including $81.7 billion in assets under management for which Hines serves as investment manager, and $79.2 billion representing more than 172.9 million square feet of assets for which Hines provides third-party property-level services. Historically, Hines has developed, redeveloped or acquired approximately 1,450 properties, totaling over 485 million square feet. The firm has more than 180 developments currently underway around the world. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to ESG, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information.
Since entering Europe in 1991, Hines has grown its European platform to include offices in 16 cities as well as a presence in 62 cities in 13 countries. Hines oversees a portfolio of assets under management valued at approximately €26.3 billion of assets under management in Europe, including €21.9 billion for which Hines serves as an investment manager and €4.4 billion representing more than 3.8 million square metres of assets for which Hines provides third-party property-level services, in Austria, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Poland, Spain and the United Kingdom.
¹Includes both the global Hines organization as well as RIA AUM as of December 31, 2020.
Visit www.hines.com for more information.
About the Hines European Value Fund 2 (HEVF 2)
HEVF 2 is a euro-denominated, Luxembourg-based investment fund launched in December 2019. Managed by Hines, its objective is to acquire a portfolio of core-plus and value add profile commercial real estate investments throughout the major European markets on behalf of an institutional investor group. Whilst the fund has broad flexibility across sectors, the portfolio is largely focused in Logistics, Residential and Office usages.
HEVF 2 follows its predecessor HEVF 1 (2017 vintage) in continuing the flagship HEVF series for Hines in Europe, alongside the Hines European Core Fund (HECF) open-ended core flagship vehicle.