Heitman, a global real estate investment management firm, announced closing its Heitman Real Estate Debt Partners III fund (HDP III) at $806 million in capital commitments, surpassing its $600 million fundraising goal. And the fund will aim to provide creative financing solutions to high-quality sponsors executing real estate projects in traditional and alternative property sectors.
HDP III will look to capitalize on capital market dislocations and provide loans to sophisticated real estate operators across the United States. And the fund deploys an approach that targets returns that fall between core-plus and value-add strategy equity programs.
The closing of HDP III reflects Heitman’s ability to attract capital from investors seeking income generation and portfolio diversification through real estate-backed debt. As part of the capital raise, the Fund received support from existing investors in the fund series along with interest from new investors.
Heitman’s debt platform manages $5.5 billion in AUM, investing across structured senior debt, value-add and mezzanine debt, and opportunistic debt.
KEY QUOTE:
“Our latest fundraise demonstrates Heitman’s ability to navigate the current market environment and our experience in executing debt strategies that utilize innovative investment structures. As demand for flexible and reliable financing solutions grows, we believe the real estate debt market is well-positioned with attractive opportunities.”
- Jon Lindell, Executive Vice President and Portfolio Manager for HDP III
