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New Europe Property Fund Launches with $230M

WARSAW-Heitman LLC starts its third Europe property fund with equity from Europe-based pension funds and insurance companies. As did its two predecessors, the fund will target value-add opportunities, but will have more equity to work with as well as a broader geographic focus.

By Brian K. Miller | Updated on February 10, 2005

WARSAW-Heitman LLC has closed on the first $230 million of equity for its third Europe property fund. The Chicago-based multi-national real estate investment-management firm expects to close on an additional $230 million of equity by the end of the year, which with 65%-75% leverage would give the fund $1.3 billion in buying power.Heitman’s managing director of international private equity Chris Merrill tells GlobeSt.com that Heitman Europe Property Partners III will target value-add opportunities similar to the previous funds, but will have more equity to work with as well as a broader geographic focus. Capital commitments to HEPP III have been made by both new and existing clients of the firm, including European pension funds and insurance companies. The fund will target office, warehouse, residential and retail property investments in Poland, Hungary, the Czech Republic, Slovakia, Slovenia, the Baltic States, Romania and Bulgaria. The two previous HEPP funds have acquired properties in Europe with a combined value of $1.2 billion, and the new fund will double that number when fully invested. As such, Merrill says it is well known and has extensive relationships in the market, which allows it to see the vast majority of assets that come to market. “Given our strong relationships we have already identified a solid pipeline of investment opportunities for HEPP III,” says Merrill.

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