Heitman LLC, the global real estate investment management firm, announced the final close of Heitman Value Partners III, L.P., a commingled fund that will invest in real estate value creation strategies throughout the U.S.
HVP III closed with total equity commitments of $500 million, exceeding the firm’s original target of $400 million.
The Fund has already invested or committed approximately 40 percent of its equity capital and with the use of leverage, has the capacity to acquire approximately $1.5 billion of real estate over the next three years.
Commitments to the Fund were made by many prior HVP fund series investors along with several new clients from across the globe.
The HVP fund series was founded in 2003 and has raised $1.9 billion since inception, and with its current and prior funds has invested or has the capacity to invest approximately $5.6 billion. Senior managing director Tom McCarthy oversees the strategy’s execution for Heitman which focuses on investing in assets across traditional and specialty property types that require some type of physical, operational, or financial transformation. Investment strategies include forming joint ventures with public and private real estate operating companies to assist Heitman in the execution of the value creation strategies.
“As with its predecessor funds, demand for HVP III was supported by a broad group of our existing clients. Their endorsement was critical to Heitman achieving this outcome in today’s competitive capital raising environment. We are grateful for our clients’ continued support and the confidence they have in our firm and real estate professionals,” said Maury Tognarelli, Chief Executive Officer of Heitman.
“Additionally, we are excited for the opportunity to develop strong and lasting relationships with the new clients who supported this strategy.
“We are very proud of the unique relationships we have developed with our clients over our 50 year history, and believe we are well-positioned to achieve the Fund’s stated investment objectives.”