Chicago-based private equity real estate firm Heitman has closed its second value-added fund on more than $800 million (€593 million), double the size of its first North America-focused vehicle. Heitman Value Partners II will be overseen by Tom McCarthy, a partner and 22-year veteran with the firm.
The vehicle culled commitments from 20 new and existing institutional investors and has an investment capacity more than $2.4 billion with leverage. According to the firm, the fund has already committed 41 percent of its capital to projects, including investments in senior housing, data centers, condo hotels and offices.
Maury Tognarelli, Heitman’s chief executive officer, said in a statement that the fund will look at investments in the residential, office, industrial and retail sectors, as well as more specialized plays in medical offices, student housing and self-storage. The vehicle’s geographical focus is the US, Canada and Mexico.
Limited partners like the California State Teachers Retirement System, the Colorado Public Employees Retirement Association and TIAA-CREF chipped in for the firm’s first value-added vehicle, Heitman Value Partners I, which closed on more than $400 million in 2005 and had buying power of around $1 million. CalSTRS contributed $200 million to Heitman Value Partners II.
Founded in 1966, Heitman made a name for itself in Central and Eastern Europe in the mid-1990s, where it has invested in a number of high-profile projects. The firm has more than $20 billion in assets in the US, Europe and Asia.