London, Feb. 3, 2022 – Heitman LLC (Heitman), a global real estate investment management firm, today announced the first close of its European value fund. The fund has a target fund size of €350 million and an objective to aggregate a property portfolio with a focus on the alternative property sectors across Western Europe including opportunities in self-storage, rented-residential, senior housing, and student housing. Shortly after the closing, the fund made its first investment in a self-storage portfolio in the UK.
“We are pleased with the closing of this fund, which marks our fifth successful fund launch since the beginning of the pandemic. The European value fund will provide our regional investment team with an opportunity to leverage our broad global investment experience in the alternative property types,” said Maury R. Tognarelli, Heitman CEO. “Alternative property sectors serve a diversifying role within a broader portfolio with investment performance that is generally less correlated to regional economic activity. These traits may offer solutions for those investors seeking to construct more resilient property portfolios.”
“We have long focused our European efforts on the region’s alternative sectors given their diverse and unique set of demand drivers that are delinked from broader economic cycles,” said Tony Smedley, Heitman Managing Director and Head of European Private Equity. “Strategically, the new value fund is focused on investing in assets that combine growth potential with competitive risk-adjusted returns. Given the relative nascency of the specialty sectors in Europe, we believe the region offers a compelling combination of resilient cash flows, demographic driven growth, and continued institutionalization of these more niche asset classes.”