U.S. Investors Hines And Tishman Raise €1.5B Targeting Late-Cycle Returns
Within the space of a fortnight Hines and Tishman Speyer have each raised a big fund looking to buy value-add properties in Europe.
Hines raised €720M from 16 investors for the Hines European Value Fund, exceeding its target by 40%. And Tishman Speyer raised €750M from 20 investors for Tishman Speyer European Real Estate Venture VIII, 25% above its target.
In the first 12 months following its fund’s initial closing, Hines has committed around €200M to the fund’s first three project investments in Stuttgart, Copenhagen and Barcelona, along with a fourth acquisition in exclusivity. Its fund can invest across the EU and will look at all asset classes.
Tishman’s fund will seek out new opportunities across Europe with a primary focus on Berlin, Frankfurt, Hamburg, London, Munich and Paris, and has made an €88M investment in a Madrid office scheme so far. It will focus on office and mixed-use development and refurbishment.
For both funds, investments in markets with strong economies like Berlin, Madrid or Paris are likely to focus on taking advantage of growing office rents, while in London investments are likely to focus on assets that are being repriced as a result of growing uncertainty about the economy.
