Focus, discipline, and
value creation.

Private Real Estate — Equity

A known leader in the development of private equity investment strategies, Heitman actively manages separate account and commingled fund portfolios across North America, Europe, and Asia-Pacific. Our core, value-added, and opportunistic strategies stem from decades of experience, focusing on our clients along with their risk and return objectives to consistently generate competitive overall returns.

  • Global investment strategies

    We acquire property outright or acquire interests in joint venture formats for our clients. Our experience spans across property types, both traditional (e.g., office, industrial, rented residential, and retail) as well as specialty (e.g., self-storage, senior housing, and student housing). Our investment professionals are skilled at executing investments across the risk/return spectrum. The private equity team has extensive resources, including accounting, acquisitions, dispositions, portfolio and asset management, due diligence, and construction/engineering professionals. The team is supported by the broader Heitman platform, which includes all of our key business service groups.

  • Extensive experience

    Heitman has over 30 years of experience investing in private real estate equity. Our real estate experience, business platform, and investment track record make us one of the leading managers in the industry. Our business is structured to provide the highest level of service and meet the objectives of our investors. We have built our reputation on a track record of strategically investing on behalf of our clients. Through periods of market recovery and expansion or market correction, we have maintained an active market presence, searching for mispriced opportunities, building our client base, and expanding our organization's resources.

  • Global investment philosophy

    Our collaborative, multi-disciplined approach to investment has been shaped over multiple market cycles. We are acutely aware of each property sector’s vulnerabilities and behavior during periods of illiquidity, as well as its potential under improving economic conditions. Our time-tested investment philosophy and process is based on three key principles:

  • FOCUS

    Emphasis on high-quality, well-located property with the functional attributes to stand the test of time.

  • DISCIPLINE

    Conduct extensive analysis and risk mitigation to ensure that investments meet our standards.

  • VALUE CREATION

    Identify inefficiencies to implement value-creation programs through active asset management, strategically using capital at each stage of the process.

Global Assets Under Management

  • 32.4

    Billion in assets under management

    USD as of September 30, 2017

Investing in private real estate equity has been a cornerstone of our firm over the past 30 years. We offer investment strategies across the risk/return spectrum.

Our approach is customized to achieve our clients’ goals. We focus on three primary strategies:

Core

Concentrated on investments in high-quality “stabilized” property, where a large percentage of the total return is generated by current income with low volatility. Portfolio construction is driven by sector weightings and asset selection that consider the economic exposure of a particular metropolitan area and geography.

  • Global or regional separate account
  • Commingled fund
  • Collective investment trust

Value-added

Consists of investments in “non-stabilized” property, where approximately half the total return is generated by growth with higher volatility. Investments with this risk profile are typically time-sensitive and by their nature are in a less efficient part of the investable universe. We seek quality property where we can identify a physical, operational, or financial improvement opportunity that we can address through active management and that has been mispriced by the market. Higher leverage is typically employed as part of the capitalization to enhance the return on equity.

  • Global or regional separate account
  • Commingled fund

Opportunistic

Designed for clients who seek investments in “non-stabilized” property, where the majority of the total return is generated by growth with higher volatility. These investments are typically capitalized utilizing a higher level of leverage to enhance the return on equity.

  • Global or regional separate account

 

For more information on how to access these solutions, please visit the Vehicles page.

We strive to build long-standing partnerships with our clients — we succeed when they succeed.

Recognizing that no two investors are the same, we provide clients several alternatives for accessing our private equity investment capabilities.

Commingled funds

Heitman has formed and managed nearly 30 commingled fund portfolios since the 1980s. We offer both open- and closed-end commingled fund opportunities in North America, Europe, and Asia-Pacific. Current commingled offerings include:

Core
  • Heitman America Real Estate Trust: Core, open-end North American fund with the primary strategy of investing in stabilized properties. Capital raising is ongoing and commitments are accepted on a quarterly basis.
  • Heitman European Residential Investment Partners: Core/core-plus, closed-end European fund with the primary strategy of acquiring and managing rented residential assets in Western Europe, primarily within Germany and the Netherlands.
Value-added
  • Heitman Value Partners series: Value-added, closed-end North American fund series with the primary strategy of forming property-level joint ventures with public and private real estate operating companies to implement value-creation strategies using capital wisely, along with active management to enhance the investment returns.
  • Heitman European Property Partners series: Value-added, closed-end European fund series with the primary strategy of implementing physical, financial, or operational value-creation strategies using capital wisely, along with active management to enhance the investment returns.
  • Heitman Asia-Pacific Property Investors: Value-added, closed-end Asia-Pacific fund series with the primary strategy of forming property-level joint ventures with public and private real estate operating companies in the region to implement value-creation strategies using capital wisely, along with active management to enhance the investment returns. We are currently marketing the first fund in the series.

Defined Contribution – CITs

Heitman offers collective investment trusts, or CITs, to professional managers of defined contribution plans such as 401(k)s and other similar qualified retirement plans. CITs are transparent and operationally-friendly for defined contribution plans such as target date funds and real asset strategies. Heitman’s CITs provide a meaningful real estate allocation and the pursuit of improved retirement savings outcomes through stable income return and real asset diversification.

 

Our CITs trade via the National Securities Clearing Corporation with daily valuation, and provide access to private, core, commercial real estate assets that mutual funds cannot accommodate. This vehicle can also be utilized for public equity strategies. Current private equity CIT offerings include:

Core
  • Heitman Real Estate Retirement Strategy: HRS allocates 85% of funds to Heitman America Real Estate Trust, the firm’s marquee private, open-ended, core real estate investment strategy, and 15% to Heitman’s US Diversified Strategy, in a CIT that offers institutional-tiered pricing. Through these complementary strategies, HRS delivers access to daily-valued private, core commercial real estate across a diversified mix of property types and geographies that are designed to generate consistent income return and outperformance.

Separate account

Heitman has managed assets in separate account formats for a variety of clients for over 30 years. Our approach to these relationships is customized to meet or exceed each client’s needs and objectives. Each relationship is managed by a seasoned team of real estate investment professionals. Minimum relationship size may vary depending on a client’s return and risk objectives, in addition to the strategy and region in which it’s executed.

 

For detailed information on these products, please visit the Solutions page.

Our investment team members and property market research professionals follow the markets. To learn how we interpret developments in the industry, please click on an article below.

  • Revisiting the Living Sectors

    Featured in IPE Real Estate’s September/October 2017 issue: Evidence of Strong Growth and the Potential for More Our article, “Introducing the Living Sectors: New Investment Targets for Stability and Growth in Europe”, published in the September/October 2015 issue of IPE, …

    October 20, 2017
  • Perspective – Certainties Amid Uncertainty

    In 2016, many got caught repeatedly confusing the “probable” with the “certain.” The US election was a vivid example of this. On the morning of November 9, fingers wagged at the political pollsters and pundits: How could they have gotten …

    February 28, 2017
  • De-Linked from Brexit?

    Featured in IPE Real Estate’s September/October 2016 issue: Thinking Through the Consequences for “Alternative” Real Estate Sectors In the few months since the UK unexpectedly voted to leave the EU, real estate investors have been grappling with what Brexit will …

    October 17, 2016