EQT Real Estate II closes at EUR 1bn hard cap – fortifies commitment to thematic, value-add investments across key European cities
- EQT Real Estate II surpasses its target size of EUR 750 million by 33 percent following strong support from both new and existing international blue-chip investors
- EQT Real Estate II follows a thematic investment approach focusing on high-conviction, value-add investment opportunities primarily in the logistics and residential real estate sectors
- The Fund benefits from EQT Real Estate’s “local with locals” approach with 25 professionals based in EQT’s offices in London, Stockholm, Madrid, Milan and Paris
EQT is pleased to announce that the EQT Real Estate II fund (the “Fund”) has held its final close at its hard cap of EUR 1 billion in fee-paying assets under management. Demand from both existing and new investors was robust, with commitments into the Fund coming from a diversified group of investors across Europe, the Nordics, Asia, North America and the Middle East.
The successful fundraise of EQT Real Estate II exceeded its target size of EUR 750 million and, at EUR 1 billion, is more than 2.5 times larger than its predecessor fund, EQT Real Estate I. The Fund will seek to make direct and indirect controlling investments in real estate assets, portfolios, operating companies and joint ventures and will target equity investments ranging in size from EUR 40 million up to EUR 200 million.
EQT Real Estate II will execute a thematic investment approach with a focus on attractive investments which are decoupled from the financial cycle. Target opportunities, which are underpinned by key secular growth drivers, include urban logistics and warehouse assets that benefit from an ongoing shift in retail consumption trends towards e-commerce and residential investments, including new build for-rent housing, student housing and senior living, which benefit from continued favorable supply-demand dynamics, urbanization and population growth. These are sectors that the EQT Real Estate Advisory Team has extensively researched and in which it has built strong investment convictions.
The Fund benefits from EQT Real Estate’s “local with locals” approach (the team’s 25 investment professionals are based in EQT’s offices in London, Stockholm, Madrid, Milan and Paris). The team will also benefit from the knowledge and resources of the wider EQT platform to source and execute off-market investment opportunities and create value through intensive asset management. The team’s expertise combined with EQT’s proven sustainability framework allow EQT Real Estate to navigate future trends to meet the current and future needs of occupiers.
To date, EQT Real Estate II has committed capital into four high conviction investment programs in Sweden, France and the UK, all with a social impact strategy underpinned by EQT’s industry leading sustainability credentials:
- StendörrenFastigheter – majority control of a publicly-listed company which owns a portfolio of 733,000 sqm of operational logistics / urban warehouse real estate across 124 assets in and around Stockholm and a further 666,000 sqm of consented land on which it plans to build 800 apartment units and additional logistics / urban warehouse assets;
- Svenska Verksamhetsfastigheter (Rock) – a portfolio of 28 urban logistics properties located in university cities around Sweden with a pipeline of additional add-on acquisitions;
- Nest – a residential solutions platform in France with plans to deliver 4,000 purpose-built apartment units to address the housing and services needs of people with physical disabilities; and
- Saturn – a residential joint venture focused on the delivery of 3,000 newly built, high-quality rental homes in affordable parts of Greater London.
The Real Estate Advisory Team is also actively evaluating transactions in Germany, Spain, Italy and Benelux.
Robert Rackind, Partner and Head of EQT Real Estate, commented: “We would like to thank all of the investors – both new and existing – for their support of EQT Real Estate II. As we are entering a new investment cycle, we see a strong pipeline of attractive value-add investment opportunities that fit EQT Real Estate’s thematic approach to investing primarily into Europe’s key cities and in particular in our current focus on ‘beds’ and ‘sheds’ assets that are benefitting from positive growth drivers and secular trends.”
Lennart Blecher, Deputy Managing Partner and Head of EQT Real Assets, added: “The high demand that EQT Real Estate II received from a truly global blue-chip investor base is a testament to the compelling combination of EQT’s platform and our Real Estate Advisory Team’s proven real estate expertise. EQT’s ability to cross-pollinate market knowledge, draw on expertise in key areas like sustainability and share networks across our platform is an excellent complement to EQT Real Estate’s in-house talent.”
Christian Sinding, CEO and Managing Partner at EQT, commented: “Real estate is one of the most exciting growth areas for EQT and the success of this fundraise is a reflection of EQT Real Estate’s ability to source attractive opportunities and then develop sustainable, future-proofed assets, while delivering strong results to its investors. We look forward to continuing to build on that success.”
More than 35 percent of the commitments were closed after February 2020 during a period of significant global lockdowns due to the COVID-19 pandemic which showcases not only the investor appetite for the Fund but also the strengths of EQT’s tech infrastructure as the latter part of the fundraising process was carried out digitally.
EQT Real Estate II is backed by a highly regarded, international investor base including public and corporate pension funds, insurance companies, sovereign wealth funds, global asset management firms, commercial banks, endowments and foundations, private wealth channels and family offices.
Robert Rackind, Partner and Head of EQT Real Estate, Investment Advisor to EQT Real Estate I and II, +44 7860 271 392
Eric Lemer, Managing Director, Head of Business and Capital Development of EQT Real Estate, Investment Advisor to EQT Real Estate I and II, +44 7971 226 842
EQT Press Office, firstname.lastname@example.org
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EQT is a differentiated global investment organizationwith more than EUR 62 billion in raised capital and around EUR 40 billion in assets under management across 19 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and North America with total sales of more than EUR 27 billion and approximately 159,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
About EQT Real Estate
EQT Real Estate, part of EQT Group and Investment Advisor to EQT managed real estate funds, seeks direct and indirect controlling interests in value-add real estate assets, portfolios and operating companies across gateway cities in the UK and Europe that offer significant potential for value creation through repositioning, redevelopment, refurbishment and active asset management. The EQT Real Estate Advisory Team comprises 25 experienced Investment Advisory Professionals working out of EQT’s offices in London, Madrid, Milan, Paris and Stockholm. The Investment Advisory Team, which has access to the full EQT network including 11 European offices and more than 500 EQT Advisors, has experience analyzing and investing across the pan-European real estate market and has, collectively, advised on over 130 real estate projects in multiple asset classes across Europe.