On January 10, Hines announced the launch of its flagship tactical fund series in the United States. The fund is looking to raise $1 billion in equity by May 2022, which would provide purchasing power of $2.5 billion after leverage. Their goal is to renovate struggling and undervalued properties in 30 of the country’s largest cities, including senior living communities hampered by the pandemic. Hines is banking on the fact that many owners may have to reexamine their portfolios, or pivot altogether, after the last couple of years, and we would not disagree.
The Hines U.S. Property Recovery Fund is a closed-end, diversified fund, targeting tactical investment opportunities across the largest MSAs. Besides senior living properties, the fund will pursue investments across the residential, office, self-storage, and student housing sectors.
The firm has already committed $590 million of equity, along with two logistics sites in California valued at $186 million, giving the fund almost $1.5 billion in immediate investment capacity. Hines previously has invested in the senior living industry in a joint venture with Welltower on a senior living community in Manhattan and has partnered with MorningStar Senior Living in Texas as co-investors. Last year, Houston-based Hines also announced a fund targeting Asia-Pacific investments.
