Heitman closes $800m value-added fund.

Heitman LLC, a multi-national real estate investment management firm, announced the closing of Heitman Value Partners II (HVP II).

HVP II's investment objective is to assemble a diversified portfolio of traditional and specialty properties primarily using joint ventures with strong operating partners to execute value-creation investment strategies. Tom McCarthy, Partner and a 22-year veteran of Heitman will oversee the fund series.

Heitman received $800 million of equity commitments for HVP II from 20 existing and new clients of the firm. Combined with leverage, HVP II has the capacity to acquire over $2.4 billion of real estate over the next three years, effectively double the size of its predecessor fund, Heitman Value Partners I. Heitman will invest $15 million of its own capital in HVP II. As of its closing, the Fund has invested or committed 41% of its equity capital across a variety of property types including senior housing, data centers, condo hotels and office.

Maury Tognarelli, chief executive officer of Heitman commented, "We are pleased with both the level of commitments received for HVP II as well as the sophisticated amalgam of new and existing clients who have chosen Heitman to execute this investment strategy on their behalf.

"HVP II will invest in residential, office, industrial and retail properties as well as in specialty sectors such as medical office, student housing and self-storage facilities located in the United States, Canada and Mexico.

"Similar to Heitman Value Partners, we will endeavor to invest the capital raised for HVP II alongside select real estate operators, competitively assisting them in capitalizing their businesses while providing the high quality of service that our clients have come to expect from the Heitman organization."

Heitman, founded in 1966 and headquartered in Chicago, manages approximately $20.1 billion in assets invested directly and indirectly in real estate in the US, Europe and Asia. The firm's clients include US and international institutions, pension plans, endowments and foundations, and individual investors.