Hillview launches GBP300m UK regional real estate fund

Hillview Real Estate, the UK regional office investor, has launched its third UK commercial real estate fund, Hillview Partners Property Fund III, with a target size of GBP300 million.

The value-add fund is aiming to secure equity commitments of GBP150 million from investors. Using leverage, the fund aims to deliver a total net return of 12 per cent per annum to investors, by investing GBP300 million in well-located, multi-tenanted, institutional-quality properties in key cities and regions with favourable supply-demand dynamics. Individual investments are expected to range between GBP10 million and GBP25 million and provide significant scope for value enhancement through active asset management, including repositioning of properties and restructuring of leases.

Hillview Partners Property Fund III continues the value-add strategy which Hillview Real Estate has successfully executed by transacting more than 1.2 million sq ft across 12 regional cities and follows the recent completion of the investment programme for its Hillview Partners Property Fund II. 

Nadav Livni, founder of Hillview Group and fund manager of Hillview Real Estate, says: “Despite the challenging investment environment, we believe the launch of HPPF III is at an opportune time owing principally to the government's strong commitment to wiping out regional inequality through its “levelling-up” agenda.

"Our analysis confirms that the supply of new regional office space has been limited ever since the global financial crisis of 2008 and is likely to be even more so in the wake of Covid-19. Occupational demand will be driven by organic growth from local occupiers as well as corporates recognising the benefits of 'north-shoring'.

“We have a strong and compelling acquisition pipeline of opportunities at a dislocation to fundamental value and plan to announce details of our first acquisition soon."