Global real estate investment management firm Heitman joins a growing list of investors looking to capitalize on growing distress in senior housing.
The Chicago-based firm announced the closing of three private equity funds, raising a total of $3.2 billion among them.
The funds include:
- A value-add fund series with $1.9 billion in commitments, focusing on multifamily and single family homes, self storage assets, medical office buildings, student and senior housing. The fund has the capacity to invest in up to $4.75 billion in assets across these sectors.
- A $500 million debt fund aiming to originate nearly $1.5 billion in loans for property types poised to perform well in a post-Covid recovery. The target markets are primary and secondary locations, and the debt will be deployed through a variety of methods including subordinate debt, senior bridge loans, and senior construction loans.
- A $750 million global core-plus fund that will assemble and operate a global portfolio of properties diversified across sector, geography, and investment strategy, across traditional property types. The fund has the capacity to invest up to $1.5 billion.
Heitman has $43.8 billion in assets under management across the globe. The firm is familiar with senior housing. The firm formed a joint venture in June 2019 with Signature Senior Lifestyle, the UK affiliate of Revera, to develop market-rate, private pay senior living in and around London. It also has senior housing communities in The Netherlands under management.
In the U.S., Heitman partnered with Seattle-based operator, Merrill Gardens, to purchase four communities in California and Washington in 2016.
The value-add fund was oversubscribed and includes sovereign investors, corporations, foundations and pension funds.
Heitman did not respond to a request for comment from Senior Housing News.
The firm is the latest global investor to target senior housing. In April, Ares Management Corporation (NYSE: ARES) raised $1.7 billion in commitments for its newest opportunity fund, beating its $1.5 billion target, and distressed senior housing is expected to play a significant part of the fund’s acquisition strategy.
In December 2020, Harrison Street Real Estate Capital raised $720 million in a new fund targeting senior housing, data center and life science real estate — and may raise as much as $2 billion by the time it closes. Harrison Street focuses on stabilized senior housing properties and has a stable of operating partners that serve the luxury market, including Belmont Village and Oakmont Senior Living.
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