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Heitman Raises $806M for US Real Estate Debt Fund, Exceeds $600M Target

Heitman LLC has raised $806 million for a fund that will provide real estate loans across the U.S.

The money raked in from the Heitman Real Estate Debt Partners III fund (HDP III) is above the $600 million figure the investment management firm targeted initially. It got support from both new investors and existing ones who have participated in the Chicago-based firm's fund series.

Heitman said in a statement that it will be seeking to find high-quality sponsors working on real estate projects in both alternative and traditional property sectors. The goal of HDP III is to prioritize returns that fit its core-plus and value-add equity strategies. The first strategy focuses on divergence, convergence, and delinked, according to Heitman. The latter seeks value opportunities with a more targeted approach for deploying capital.

Along with providing loans to real estate firms, Heitman noted it will look to take advantage of "dislocations in the capital markets."

“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,” Jon Lindell, executive vice president and portfolio manager for HDP III, said.

“As demand for flexible and reliable financing solutions grows, we believe the real estate debt market is well-positioned with attractive opportunities.”

The latest fundraising from Heitman comes after it purchased an industrial property in January. The 300,000-square-foot building is located in Norfolk, Virginia, and marked the first asset class-related acquisition the company has made in the U.S. Heitman, which has $49 billion worth of assets under management, has 10 offices globally. Its real estate investments focus on debt, private equity, and securities from public companies.

Reprinted with permission from the Monday, 03 February 2025 14:54:10 EST online edition of GlobeSt © 2025 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-256-2472 or reprints@alm.com.