Global real estate investment manager Heitman has announced the close of its third real estate debt fund with $806m (£649.3m) in capital commitments.
The Heitman Real Estate Debt Partners III (HDP III) fund had a fundraising goal of $600m.
The fund aims to provide creative financing solutions to high-quality sponsors executing real estate projects in traditional and alternative property sectors.
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“Our latest fundraise demonstrates Heitman’s ability to navigate the current market environment and our experience in executing debt strategies that utilise innovative investment structures,” said Jon Lindell, executive vice president and portfolio manager for HDP III.
“As demand for flexible and reliable financing solutions grows, we believe the real estate debt market is well-positioned with attractive opportunities.”
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HDP III will seek to capitalise on dislocations in the capital markets and will provide loans to sophisticated real estate operators across the US. The fund’s approach targets returns that fall between core-plus and value-add strategy equity programs.
Heitman said that the successful close of the fund reflects the company’s ability to attract capital from investors who are seeking income generation and portfolio diversification through real estate-backed debt.
HDP III was funded by a mix of both new and existing investors.
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