Heitman has secured $200m (€175m) in an initial capital raise for its new US real estate debt fund, according to sources that track fundraising.
Heitman Core Real Estate Debt Income Trust has attracted institutional investors, including the State of Wisconsin Investment Board (SWIB) and Hawaii Employees’ Retirement System.
According to a board meeting document, SWIB has committed $75m, and IPE Real Estate understands that Hawaii ERS has committed $50m.
SWIB told IPE Real Estate it was a good time to invest in real estate debt, which can provide stable income with capital preservation.
Heitman has managed real estate debt investments on behalf of SWIB in the past, through separate accounts.
Heitman, which did not comment, has structured the fund as an open-ended vehicle and is targeting a net internal rate of return of between 8% and 10%.
It will provide debt for core office, industrial, retail and apartment assets, as well as nice sectors such as self-storage and student and senior housing.