Heitman secured capital commitments totaling $806M at the close of its third real estate debt fund, Heitman Real Estate Debt Partners III (HDP III).
HDP III, together with its companion vehicles Heitman Real Estate Debt Partners III-A and Heitman Real Estate Debt Partners III-Blocker, generated support from 13 investors, according to an amended February 3 filing with the SEC. Heitman sought $1B from the fundraising, double the target for Heitman Real Estate Debt Partners II. The minimum investment amount was set at $1M.
The real estate investment management firm opened HDP III for subscription on December 19, 2023. Heitman Securities assisted in marketing the fund in California and Wisconsin, while Heitman International HK, Heitman UK, and Heitman International Real Estate Securities helped promote the fund outside of the US. According to Dakota data, the fund attracted commitments from the State of Wisconsin Investment Board, Alaska Retirement Management Board, and the City of Manchester Employees' Contributory Retirement System.
Heitman said the fund will provide financing solutions to sponsors undertaking developments in the traditional and alternative property sectors. The investment vehicle will target returns that fall between the firm's core-plus and value-add strategy equity programs.
Under its debt platform, Heitman managed $5.5B of assets as of December 2024. The platform deploys capital in structured senior debt, value-add and mezzanine debt, and opportunistic debt.
