Heitman Closes $2.62B Value-Add Fund VI Targeting Medical Office and Alternative Real Estate Sectors

Heitman announced the final close of Heitman Value Partners Fund VI with $2.62 billion in total commitments, exceeding its $1.75 billion target and marking the firm's largest closed-end fundraise to date. The fund received $2 billion in fund commitments and an additional $620 million of co-investment capital, which when combined with estimated leverage, will provide approximately $6.55 billion in capital to assemble the portfolio over the next few years.

Diverse Investor Base Supports Alternative Sectors Strategy

The fund secured commitments from more than 30 investors across seven countries, representing Heitman's most geographically diverse investor base to date. The strategy focuses on demographically driven, less cyclical alternative sectors, including medical office, student housing, senior housing, and self-storage, complemented by traditional growth sectors such as apartments and industrial.

Heitman Value Partners Fund VI seeks to deliver an overall return of 12 percent to 14 percent net of fees and costs through a diversified approach that combines delinked, growth-oriented, and contrarian investment opportunities.

Strategic Timing Amid Market Dislocation

"We are pleased to announce the final close of HVP VI and are grateful for the confidence and trust our new and existing investors place in us," said Maury Tognarelli, Heitman CEO. "We view this phase of the cycle as an attractive entry point. Strategies underpinned by secular trends, that generate returns from a combination of income and value creation opportunities continue to remain compelling."

Mike Trench, Executive Vice President and Co-Portfolio Manager of Heitman's value series, emphasized the market context for the fundraise. "In a period of continued market dislocation, investors are increasingly looking for partners with deep experience and cycle-tested strategies," Trench said. "HVP VI is designed to capitalize on the resilience of non-correlated sectors and the emerging opportunities created by today's capital markets environment."

Three Decades of Value-Add Experience

Heitman brings more than three decades of value-add investing experience to the fund. Since 2004, the firm has deployed five value-add funds in North America representing $12.5 billion in gross cost and $4.5 billion in equity commitments across 103 investments.

The HVP series is supported by the firm's substantial resources, including a robust in-house global research platform that informs investment selection and market insights. The successful fundraise exceeded target by $250 million and reached the fund's hard cap.

Sources

Heitman