Hines Fund Reaches $1.4B in Investor Commitments

14191 Myford Road in Tustin, Calif. Image courtesy of Hines

Hines U.S. Property Partners has closed an additional $600 million of equity, bringing its aggregate equity commitments to $1.4 billion, Hines announced Tuesday. The total equity raised gives HUSPP more than $2.3 billion in overall investment capacity.

To date, the flagship commingled U.S. core-plus fund has closed on six investments totaling about $600 million and spanning industrial, multifamily, mixed-use and office properties.

Consistent with the fund’s diversification objectives, the current portfolio is more than two-thirds weighted toward the industrial and multifamily sectors. The fund is expected to deploy the remaining capital over the next 12 months.

HUSPP’s diverse investor base includes 20 institutional investors consisting of U.S., European and Asian public and private pension plans, insurance companies, high net-worth individuals, banks, non-profit organizations and family offices.

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“As an open-ended fund, HUSPP is expected to continuously raise capital and will become a large-scale, multibillion-dollar institutional fund targeting core plus returns in the U.S. market,” according to a prepared statement from Hines. The fund targets next-generation assets in top-performing submarkets throughout the U.S., the statement continued.

In addition to the living, industrial, office and mixed-use sectors, the fund is considering such alternative sectors as life sciences and self storage.

Diversification under way

Earlier this year, HUSPP made two acquisitions in Southern California.

In an off-market transaction, the fund purchased a 112,000-square-foot manufacturing facility at 14191 Myford Road in Tustin, Calif. The building is 100 percent leased to a pharmaceutical manufacturer for the next decade.

The fund also acquired the 203,000-square-foot JCPenney building at the Westfield Culver City shopping center.