Heitman Fund Holds Final Close

Heitman Value Partners III L.P. has been put to bed with a generous amount of equity commitments.
Maury Tognarelli

Maury Tognarelli, Heitman

Heitman Value Partners III L.P., a Heitman L.L.C. commingled fund focused on a value-creation strategy throughout the United States, has reached its final close, Heitman announced Monday. The fund closed with total equity commitments of about $500 million, substantially over the firm’s original target of $400 million.

Of that $500 million in equity capital, about 40 percent has already been invested or committed. With the use of leverage, the fund has the capacity to acquire about $1.5 billion of real estate over the next three years.

Commitments to HVP III reportedly were made by many previous HVP fund series investors, as well as by several new clients from around the world. Further information about the fund was not forthcoming from Heitman as of presstime.

“As with its predecessor funds, demand for HVP III was supported by a broad group of our existing clients,” Heitman CEO Maury Tognarelli said in a release. “Their endorsement was critical to Heitman achieving this outcome in today’s competitive capital raising environment.”

The HVP fund series was founded in 2003 and to date has raised $1.9 billion and has invested, or has the capacity to invest, approximately $5.6 billion. The funds are overseen by senior managing director Tom McCarthy.

The fund series’ strategy focuses on “investing in assets across traditional and specialty property types that require some type of physical, operational, or financial transformation,” according to Heitman. Approaches include forming joint ventures with public and private real estate operating companies.