Heitman LLC, a real estate investment management firm, has closed its fourth fund at more than $1.1 billion, beating its $750 million target. Heitman Value Partners IV invests in in industrial, multi and single-family rental, medical office, self-storage and student housing properties.
Chicago, Feb. 7, 2019 – Heitman LLC (Heitman), a global real estate investment management firm, today announced the final closing of Heitman Value Partners IV (HVP IV). Heitman received capital commitments of more than $1.1 billion to the strategy, surpassing its initial target of $750 million.
HVP IV is the fourth fund in Heitman’s North American closed-end, value-added fund series founded in 2003. Through these funds, Heitman has invested, or has the capacity to invest, in approximately $7.6 billion of property situated throughout North America. To date, HVP IV has invested or committed 44% of the fund’s investable capital to investments in industrial, multi and single-family rental, medical office, self-storage, and student housing properties.
“We are pleased to announce the final close of Heitman Value Partners IV and are grateful for the strong support from our clients that allows us to execute our North American value-added investment strategy,” said Maury R. Tognarelli, Heitman CEO. “We remain constructive in the later stage of the economic and investment cycle, and continue to see opportunities in today’s complex market enivornment that will serve our client’s property investment objectives.”
HVP IV’s investment objectives are to assemble a diversified portfolio of traditional and specialty property types, primarily through property-level joint venture partnerships with public and private REITs and real estate operating companies (REOCs), that can benefit from the prudent use of additional capital to create value while generating higher total returns on investment. Targeted investments include property types with operating fundamentals that are driven by factors delinked from the economy; property types that will experience growth as a result of shifting demographic trends fueling tenant demand that exceeds supply; and, markets and/or sectors where risk is mispriced. This approach to investing results in balanced returns from income and capital appreciation.
“Our strategy for HVP IV is to identify investment themes that position the fund to outperform through the market dynamics that occur during its life,” said Thomas McCarthy, Heitman Senior Managing Director and Portfolio Manager for the Heitman Value Partners fund series. “We continue to focus on diversified investments in property sectors that are delinked or less-linked to the broader economy, will benefit from ongoing secular shifts, and work with seasoned real estate operators in order to execute our value-creation investment strategies.”
Founded in 1966, Heitman LLC is a global real estate investment management firm with approximately $42 billion in assets under management. Heitman’s real estate investment strategies include direct investments in the equity or debt capitalization of a property or in the securities of listed and publicly traded real estate companies. Heitman serves a global client base with clients from North American, European, Middle Eastern and Asia-Pacific institutions, pension plans, foundations and corporations and individual investors. Headquartered in Chicago, with additional offices in North America, Europe, and Asia-Pacific, Heitman’s more than 325 employees offer specialized expertise – from a specific discipline to local insight.