EQT Exeter Closes $4.9B Industrial Fund

EQT Exeter building near Austin, Texas. Image courtesy of EQT Exeter

EQT Exeter’s Industrial Value Fund VI easily blew past its target size of $4 billion, closing at $4.9 billion in one of the largest single-property sector, operator funds ever raised.

Demand for the investment vehicle was strong, with commitments coming from a diverse group of pension funds, foundations, insurance and sovereign clients from North America, South America, Europe, Asia and the Middle East.

The fund pursues a value-add strategy to acquire, develop, renovate, lease, operate and sell industrial properties serving major markets throughout the U.S. The main focus is on single-tenant, modern supply chain assets, including big-box fulfillment centers and last-mile assets used by the world’s largest corporations for their delivery systems.

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EQT Exeter plans to capitalize on the current market fundamentals—such as reduced asset prices and higher rents—by increasing occupancy, resetting rental rates to market levels upon lease expirations and securing strong credit tenants who can better withstand market cyclicality. The firm also intends to develop high-yielding ground-up projects. Investments are expected to begin later this year.

Matt Brodnik, EQT Exeter’s chief investment officer, said in prepared remarks that the company will be counting on its relationships with owner, brokers and lenders more than ever before to uncover opportunities and assemble a portfolio. EQT Exeter President Henry Steinberg added that the company is also developing analytic tools to leverage its in-house, locally sourced acquisition and leasing data across geographies and product types.

Earlier fund

EQT Exeter, formed in early 2021 through the merger of Conshohocken, Pa.-based Exeter Property Group with Stockholm’s EQT, is a global real estate solutions provider and one of the largest real estate investment managers in the world. The company’s portfolio currently has more than 320 million square feet across 1,550 buildings.

In October, about 10 months after launching its EQT Exeter Industrial Core-Plus Fund IV, the firm’s U.S. investment vehicle closed with $3 billion in equity commitments, well above its $2.5 billion target. Fund IV focuses on single-tenant, big-box distribution facilities, fulfillment centers, last-mile logistics centers and industrial service facilities. Modern big-box warehouses are expected to comprise about 65 percent of investments.