Harrison Street reaches hard cap and raises USD2.5 billion in equity for eighth US opportunistic real estate fund
Harrison Street, an investment management firm which focuses exclusively on alternative real assets, has announced the final close of the firm’s eighth US opportunistic real estate fund, Harrison Street Real Estate Partners VIII (Fund VIII or the Fund) at the Fund’s hard cap of USD2.0 billion, exceeding its USD1.5 billion target.
Harrison Street raised an additional USD510 million in co-investment vehicles to invest alongside Fund VIII for a total of USD2.5 billion of equity raised and total buying capacity of over USD8.0 billion.
The Fund received significant support from current Harrison Street investors, making up 75 per cent of the commitments, and welcomed new institutional investors from around the globe.
Fund VIII builds on Harrison Street’s opportunistic fund series, which seeks to capitalise on demographic-driven investment opportunities critical to all age groups and generate value through acquisition, development, and repositioning of assets in partnership with experienced operating partners. Fund VIII has investments across student housing, senior housing, healthcare delivery, medical office, life sciences and storage real estate as well as digital realty and build-to-rent single family housing. Harrison Street is currently the largest private owner of student housing, a top 5 owner of senior housing and a market leader in other sectors such as medical office and life sciences.
To date, Fund VIII has committed 53 per cent of its total equity across 76 assets, 28 MSAs and in partnership with 29 best-in-class operators.
Christopher Merrill, Harrison Street’s Co-Founder, Chairman and Chief Executive Officer, says: “For more than 16 years, Harrison Street has provided global institutional investors and partners with scale, certainty of execution, a differentiated investment approach, expertise across our core sectors and an unwavering commitment to innovation. The closing of Fund VIII, the largest closed-end fund in our firm’s history, amid a black swan event, is a testament to the resiliency of our asset classes, the strength of our investment platform, and confidence placed in us by our global investors, both existing and new. We are grateful for our investors’ strong support as we continue to execute on the significant opportunities in front of us and pursue consistent performance across the portfolio throughout market cycles.”
Rob Cook, a Senior Managing Director at Harrison Street and Portfolio Manager for Fund VIII, says: “As a leader and first mover in the alternative real asset space, Harrison Street continues to have excellent access to attractive opportunities across our primary sectors and geographies. As the firm has grown, our Opportunity Fund series remains an important flagship strategy to the firm and we look forward to capitalizing on our deep expertise and relationships and leveraging our world-class team and investment platform to construct a diversified portfolio.”
Merrill adds: “Additionally, the first half of 2021 was one of the most active periods in the firm’s history, which highlights our position as a partner of choice for leading healthcare systems and universities and our ability to execute complex transactions in any environment. Harrison Street is committed to delivering strategic capital and partnering with leading operators that give our residents, tenants and partners access to high-quality facilities. We look forward to continuing to generate differentiated investment solutions and endeavour to achieve superior performance for our global investors across our established opportunistic strategies, core and social infrastructure strategies and through exciting new initiatives into Canada, clean energy and digital real assets.”