Final closing of Hines’ first green property fund raises €155 million

By Axel  Reiserer

Final closing of Hines’ first green property fund raises €155 million

Developer wins EBRD’s 2015 Sustainability Award

The Hines Poland Sustainable Income Fund was established in June 2014 to finance and support sustainability investments in office and logistics projects in Poland. The fund has achieved final closing with a total capital commitment of €155 million. With a capital commitment of €50 million, the EBRD is one of the largest partners in the fund.

After the first closing in 2014 the fund had invested €53 million in three commercial properties in Poland that will benefit from sustainability measures, including energy and water saving technologies. This new green fund concept, initiated by EBRD’s Property and Tourism Team together with Hines, is seeking to implement best sustainability practices and aims to demonstrate that an eco-focused fund can be commercially viable while delivering a sustainable impact.

The fund is looking to invest in operating assets and improve their energy performance, as well as certify at least 70 per cent of the acquired space under internationally recognised green certification. In addition, the fund will set up building management committees to increase tenants’ awareness, introduce sustainability-focused facility management and implement green lease clauses in lease agreements.

The fund is managed by Hines Luxembourg Investment Management S.a.r.l., an affiliate of Hines, a leading international property developer, owner, manager and investor. Owning and operating hundreds of assets globally, Hines has developed expertise in sustainable building design and operation. Hines Poland Sustainable Income Fund is the company’s first fund in Europe that pursues a green agenda.

“We are delighted to have developed and invested in this innovative green fund concept together with Hines, given their substantial expertise and commitment to sustainability, and we hope to replicate the concept in our region to improve the sustainability standards of existing and new building stock”, said Claudia Pendred, Director Property & Tourism with the EBRD.

In recognition of the fund’s innovative green concept, the EBRD awarded it the 2015 Environmental & Social Innovation Award during its Annual Meeting in Tbilisi. Josué Tanaka, EBRD Managing Director, Energy Efficiency and Climate Change, said: “The EBRD is a cornerstone investor in the fund and we are very proud to be involved as this is the first fund in our region with a mandatory sustainability feature. The fund can make a real difference in the market and this is what we are aiming at with the Hines Poland Sustainable Income Fund.”

“Although Hines has been focused on developing energy-efficient buildings and pursuing its sustainability mission internationally for over a decade, this fund is unique in that it targets only buildings in Poland developed by others. The goal of the fund is for Hines to introduce improvements in these buildings in a structured and disciplined manner making them more energy efficient and more commercially viable at the same time. We are very happy to have the EBRD take the role of a cornerstone investor to help us make this initiative happen in the Polish marketplace,” added Mieczysław Godzisz, senior managing director of Hines Poland.

About Hines

Hines is a privately owned global real estate investment firm founded in 1957 with locations in 185 cities in 19 countries. Hines has US$ 84.9 billion of assets under management, including US$ 42.7 billion for which Hines provides fiduciary investment management services, and US$ 42.2 billion for which Hines provides third-party property-level services. In 2014, Hines completed over US$ 8 billion in transactions on behalf of its investment management clients. The firm has 104 developments currently under way around the world. Historically, Hines has developed, redeveloped or acquired more than 1,000 properties, totaling over 339 million square feet. The firm’s current property and asset management portfolio includes 511 properties, representing over 176 million square feet. 

With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organisations in the world. Visit www.hines.com for more information.