Heitman has raised €175m with the first closing of its Heitman Europe Property Partners III Fund, which will have €1bn of eventual spending power.
The real estate investment manager said it expects to raise a further €175m of equity over the next 12 months and to utilise 65-75% gearing.
The new fund will invest in office, warehouse,
residential and retail properties in Poland, Hungary, the Czech Republic, Slovakia, Slovenia, the Baltic States, Romania and Bulgaria.
Gordon Black, managing director in Heitman’s London office, said the fund would take advantage of expected yield compression in some eastern European countries, such as Romania. It will also invest in development projects, which can comprise up to 35% of the fund’s assets.
Christopher Merrill, managing director of international private equity said: “Given our strong relationships we have already identified a solid pipeline of investment opportunities for the fund”.
Heitman’s first EPP fund was launched in 2000. Once invested, the new fund will bring its assets under management in Europe to €2.1bn. At present it has €13bn of assets under management worldwide.