Texas Firm Hines Raises $650 Million for U.S. Property Bets
- Vehicle seeks to deliver annual net returns of 9% to 11%
- Fund will target multifamily, industrial, other properties
Photographer: Aaron M. Sprecher/Bloomberg
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Real estate investment firm Hines has raised $650 million for a new fund dedicated to snapping up properties within the U.S.
Including a $100 million commitment from Hines, the open-ended, or perpetual, vehicle is projected to amass $1 billion by Sept. 30 with a goal of collecting about $1 billion per year in fresh capital in coming years, said Alfonso Munk, the firm’s chief investment officer in the Americas. The fund plans to supplement equity bets with leverage of roughly 40% to deliver so-called “core-plus” annual returns of 9% to 11%, after fees, he added.