US-based investment manager Heitman has announced the first close of its Heitman European Residential Investment Partners, a closed end, co-mingled fund with the strategy of aggregating and managing a portfolio of for-rent residential properties in Western Europe.
US-based investment manager Heitman has announced the first close of its Heitman European Residential Investment Partners, a closed end, co-mingled fund with the strategy of aggregating and managing a portfolio of for-rent residential properties in Western Europe.
Targeting €250 mln in equity commitments, Heitman European Residential Investment Partners will focus on assembling a portfolio of small- to medium-sized, rented residential properties and larger single assets across Western Europe for core/core+ investors.
Heitman, which has globally deployed €9.9 bn into rented residential assets on behalf of its investors, expects the fund will pursue further investments across Germany with appealing demographics and economic growth potential, including select German cities such as Dresden and Leipzig.
The vehicle will also seek to take advantage of the firm’s strong pipeline and deep relationships in Holland and in Amsterdam in particular to assemble the portfolio. Heitman is now believed to be one of the largest private residential landlords in Amsterdam.
In a related transaction, Heitman also announced that the vehicle has closed on a seed investment comprising 1,595 German private for-rent residential units, containing 108,578 m2 from Grainger, the UK listed specialist residential landlord.
The portfolio is spread over 110 buildings located in Western Germany mostly across the high barrier to entry metro areas of Frankfurt and Mannheim. The institutional grade portfolio formed the majority of Grainger’s residual assets in Germany.
As part of the acquisition of the seed investment, Heitman will onboard Grainger’s Frankfurt-based investment specialist team. Heitman will also manage Grainger’s final remaining German assets.
'Today’s announced seed investment and the launch of Heitman European Residential Investment Partners along with onboarding of a highly talented residential specialist team is indicative of Heitman’s conviction in the merits of this strategy, specifically, the 'Living Sectors' – rented residential, as well as student and senior housing – where we see good relative values,' commented Gordon Black, Senior Managing director for Heitman. 'We are very excited by our newest acquisitions which represent a win-win for both Heitman and Grainger and our respective European investments.'
