Heitman has raised more than $400m (€339m) for its latest US value-add real estate fund in its first close.

The amount raised is slightly less than was secured for its predecessor’s final close, according to sources that track capital raising.

The real estate fund manager, which did not comment, has raised $408m for Heitman Value Partners IV. It raised $421m in 2015 for Value Partners III.

A number of pension funds and institutional investors are investing in the fund, including from the City of Tallahassee Retirement Plan, which committed $20m, according to sources familiar with the fund.

Heitman will be looking to buy assets that have resolvable physical, operational or financial defects. 

It will invest across the US and in the apartment, retail, office, industrial and hotel sectors.