The Italian fund management arm of US investor and developer Hines is preparing the second closing for its Hines Italia Value-added Fund, with a target equity of EUR 100-150 mln, Chief Executive Manfredi Catella told PropertyEU during the opening day of the Expo Italia Real Estate fair held in Milan on Tuesday.

'We are currently in the fundraising process for the second closing of the fund, which is expected to have a warchest of up to EUR 300 mln, including leverage,' Catella said.

Last month, Hines Italia Value-added Fund raised roughly EUR 80 mln of equity at first closing. Major investors include Italian lenders Intesa San Paolo and Banca Popolare di Milano, as well as Intesa Vita, Fondazione Cassa di Risparmio di Lucca, and the Italian pension funds for lawyers and public accountants.

The fund - the first in its kind to be launched in Italy in over five years - will target the redevelopment and conversion of existing buildings into offices and residential across the main Italian cities.

Catella said the vehicle is the second value-added fund managed by Hines after the launch back in 2005 of the Monte Paschi Hines Real Estate Crescita fund. MHREC, whose investors included Generali, Fondazione Cassa Risparmio di Torino as well as Fondo Pensione Unicredito Italiano, raised EUR 150 mln of equity at first closing and currently manages some EUR 450 mln in assets. Hines Italia Sgr gained full control of MHREC in March this year.