Heitman LLC, a global real estate investment management firm, has announced the closings of three real estate investment funds totaling $3.2 billion in equity commitments.
The closings include Heitman Value Partners V (HVP V), a North American private equity fund, Heitman Real Estate Debt Partners II (HDP II), a debt investment fund, and Heitman Global Real Estate Partners II (G II), a global core plus fund.
“We are pleased to announce the closes of HVP V, HDP II, and G II,” said Maury R. Tognarelli, Heitman CEO. “The formation and subsequent capital raises for these funds aligns well with the improvements in economic and property market conditions as the globe continues to recover from the public health crisis. The funds are well positioned for the targeted investment opportunity sets and should benefit from the favorable entry points expected to evolve as the recovery extends. In this environment, strategies underpinned by secular trends, and in sectors such as multifamily, single-family rentals and self-storage, that generate returns from a combination of income and value creation opportunities are attractive.”
“We are grateful for the trust of our new and existing clients,” said Lewis Ingall, Heitman Senior Managing Director. “Early in the pandemic, we recognized the need to accelerate the timelines of strategies positioned to benefit from deploying capital early in the recovery period of a market cycle. We are pleased to have launched and closed these three new funds, which meet the market needs and broaden the range of investment strategies available to our clients to assist them in achieving their portfolio objectives.”
The three investment funds that held recent closes include:
Heitman Value Partners V (HVP V), a North American value-add, fund series;
Heitman received capital commitments of approximately $1.9 billion to this strategy, surpassing its initial target and hard cap. The total capital commitments include commitments to the fund and co-investment vehicles that will deploy capital alongside the fund.
Through these commitments to HVP V, Heitman has invested or has the capacity to invest in approximately $4.75 billion of property targeting sectors delinked from the broader economy and positioned to perform across economic cycles including multi and single-family rentals, medical office, self-storage, student and senior housing.
Heitman Real Estate Debt Partners II (HDP II), a North American high-yield debt fund series;
Heitman received capital commitments of $500 million to the strategy, reaching its hard cap. Through these commitments to HDP II, Heitman has originated or has the capacity to originate approximately $1.5 billion of loans targeting property sectors poised to perform well during a market recovery in US primary and secondary market locations via a variety of loan structures including subordinate debt, senior bridge loans, and senior construction loans.
The fund will provide financing to high-quality borrowers seeking short- to medium-term loans secured by properties with strong operations in order to implement value creation strategies and benefit from the expected market recovery. The fund will seek to aggregate a portfolio of high-yield debt investments arising from the dislocation in US real estate capital markets triggered by the pandemic, using structure to manage risk while generating the majority of the fund’s return through income.
Heitman Global Real Estate Partners II (G II), a global core-plus fund;
Heitman received capital commitments of approximately $750 million to the strategy, reaching its target for the fund. Through these commitments to GII, Heitman has invested or has the capacity to invest approximately $1.5 billion in global property.
The fund will assemble and operate a global portfolio of properties diversified across sector, geography, and investment strategy.