Real estate investment firm Heitman LLC has raised $3.2 billion to launch three new funds that will seek commercial real estate investments focused on apartments, medical offices, senior and student housing, self-storage and warehouses. It will also use funds to repurpose existing retail and office buildings as hospitality, mixed-use and residential properties, according to the source.
Heitman Value Partners V will focus on North American opportunities, while Heitman Real Estate Debt Partners II and Heitman Global Real Estate Partners II will specialize in high-yield credit. Capital infusion came from corporations, foundations, pension plans, sovereign wealth funds and other institutional investors, the source reported. Investments will be conducted in a three-year window.
“The COVID environment has accelerated secular changes in retail and office,” said CEO Maury Tognarelli. “We believe they still merit inclusion in portfolios because they offer favorable entry points.”
Heitman acquired U.K.-based Space Station Self Storage last year. Founded in 1966 and based in Chicago, the company has approximately $44 billion in assets under management, according to its website. Its 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.
Crain's Chicago Business, Heitman Raises $3.2 Billion for 3 New Funds