Harrison Street raises $1.6bn for real estate fund

Harrison Street raises $1.6bn for real estate fund

Harrison Street, an alternative real asset investment firm that buys and sells education, health-care and storage properties, announced the final close of the firm’s seventh U.S. opportunistic real estate fund, Harrison Street Real Estate Partners VII, L.P. (“Fund VII”) at the fund’s hard cap of $1.3 billion, exceeding its original $950 million target.

Harrison Street raised an additional $302.5 million in co-investment vehicles to invest alongside Fund VII for a total of $1.6 billion of equity raised and total buying capacity of approximately $4 billion.

Building upon Harrison Street’s existing opportunistic fund series, Fund VII is designed to provide innovative and flexible capital to demographic-driven, needs-based assets across the senior housing, healthcare, student housing, life sciences and storage sectors.

Fund VII has committed 26% of its equity capital and expects more than half of the portfolio to be comprised of senior housing, healthcare delivery and life science investments as demand drivers include an aging population that continues to grow and live longer.

Over 60 global institutional investors committed to Fund VII. Harrison Street received significant support from existing investors who contributed nearly 65% of the total committed capital to the fund, in addition to new limited partners.

“We are grateful for the continued confidence and strong backing we received for Fund VII from existing and new investors. Harrison Street has continued to distinguish itself as a leader in alternative real asset investing by remaining focused on our target sectors, partnering with best-in-class operating partners and working hand-in-hand with leading universities and health systems to provide flexible and innovative capital solutions to meet their most pressing needs,” said Christopher Merrill, Harrison Street’s Co-Founder, Chairman and Chief Executive Officer.

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Merrill added, “While it is certainly gratifying to see the creation of a robust market around the asset classes we have focused on exclusively for over a decade, we are exceptionally proud of our track record of generating strong risk-adjusted performance for our investors across assets classes and market cycles. We look forward to continued innovation and further developing deep relationships within our core markets as we see a great tailwind for these asset classes over the coming decade.”

Since inception in 2005, the firm has invested in 957 properties across 47 states with a gross cost of $28.1 billion.