Heitman is attracted to alternative real estate types in Europe
Heitman is investing in alternative types of real estate. These investments are made through Hesta, Australia’s largest pension fund. Hesta was spun off from the business structure specifically to operate in Europe.
The fund plans to invest in alternative European real estate, including:
– self-service warehouses;
– student housing;
– residential properties;
– medical facilities.
The investment processes in the alternative real estate sector differ from those in the traditional market. Here, the key factor shaping demand is needs, which makes them less sensitive to economic fluctuations. Caleb Mercer of Heitman noted the attractiveness of alternative properties in Europe. In his opinion, the European market offers ideal investment conditions. Property prices are falling, allowing for maximum future profits.
Real estate investments will be made through the Hesta fund. Separating the fund into a distinct entity will help diversify the portfolio and boost operational efficiency. The fund’s strategy offers ample opportunities for high long-term returns.
About Hesta
Hesta is an Australian pension fund that manages the capital of healthcare and public service employees. It includes over 90,000 employers and approximately 950,000 members. Women make up the largest group of contributors, accounting for 80%.
Founded in 1987, the fund manages approximately US$68 billion. HESTA’s activities are regulated by a financial services license issued by the Australian government.
The fund implements its investment strategies in accordance with social responsibility principles. For instance, since 2013, Hesta has avoided tobacco business capital. In 2015, the fund divested its stake in Transfield Services due to the company’s human rights violations.
Overview of Heitman’s activities
This American investment company operates in the real estate sector. It provides services in three main areas:
– private equity management;
– debt obligations;
– investments in securities, such as REITs.
The company was founded in 1966 as a mortgage banking firm. In the 1970s, it shifted its focus to equity investments. During this period, private and public pension funds began actively investing in real estate. This prompted Heitman to establish investment funds to acquire properties. The company pooled the capital of institutional investors and moved into real estate. Since then, the company has implemented various strategies for managing capital in this sector.
In addition to the U.S. and Europe, the company operates in Asia. Most of its investments are direct investments in real estate. Heitman carries out some of its operations through Old Mutual, a company in which Heitman holds a stake.