EQT held the final close of the EQT Exeter Industrial Value Fund VI at $4.9 billion with strong demand from existing and new global investors, officials said.
The fund’s strategy is centered on developing, renovating, leasing and operating logistics properties in the U.S. with an emphasis on single-tenant, modern supply chain assets. These assets include big box fulfillment center and last mile assets used by the world’s largest corporations to implement their delivery systems.
The final close exceeded EQT’s target of $4 billion and follows the $2.5 billion close of the EQT Exeter Europe Logistics Value Fund VI in 2021, which was the first vehicle to close following the combination of EQT’s real estate business and the Exeter Property Group earlier that year. That fund’s investors include the Florida State Board of Administration and New York State Common Retirement Fund.
The U.S.-focused fund also attracted large institutional investors such the New Mexico State Investment Council that committed $100 million to EQT Exeter Industrial Value Fund VI in 2022. Other investors are: the South Carolina Retirement System; Illinois Teachers’ Retirement System; the Pennsylvania Public School Employees’ Retirement System; and the Ohio Police and Fire Fund.
“We are grateful to our investors for their support, particularly during this challenging environment for making new fund commitments,” said Rayenne Chen, who heads global client solutions at EQT. “This fund is among the largest single-property sector, operator funds ever raised, and we attribute our investor partners’ support and confidence to our proven experience in navigating the opportunities and risks of challenging market cycles.”
Based in Philadelphia, EQT Exeter employs investment and leasing professionals across 25 offices and maintains over 1,200 industrial tenant relations across the U.S. and Mexico. The firm said it sees the current conditions as being fertile as higher interest rates have reduced asset pricing. At the same time high occupancy rates nationally and the elevated cost to build new facilities has fed rental rate growth.
“We look forward to assembling this portfolio amid significant pricing resets due to today’s choppy markets,” said Matt Brodnick, chief investment officer of EQT Exeter, which has $30 billion in assets under management. “More than ever, we count on our longtime and far-reaching relationships with owners, the brokerage community, and lenders to uncover opportunities and serve as their most preferred and reputable buyer.”
