EQT Exeter Industrial Core-Plus Fund IV closes at USD 3.0 billion, exceeding target size of USD 2.5 billion

Exceptional demand from existing and new investors led to the Fund being significantly oversubscribed

With EQT Exeter’s over 1,200 business-to-business tenant relationships, the Fund will serve the supply chain real estate needs of established, global tenants, with a focus on Class A, single-tenant big box distribution, fulfillment center, last mile logistics properties, and industrial service facilities (ISFs)

The successful fundraise reflects EQT Exeter’s proven and sustained outperformance for its global clients in industrial real estate

EQT is pleased to announce that EQT Exeter Industrial Core-Plus Fund IV (the “Fund”) has held its final close at USD 3.0 billion in equity commitments. Demand from existing and new investors was exceptional, resulting in the Fund being oversubscribed with commitments coming from a diversified group of valued investors across North America, Europe, Asia and the Middle East.

With its focus on Class A, single-tenant big box distribution, fulfillment center, last mile logistics properties, and ISFs, the Fund will serve the supply chain real estate needs of established, global tenants who look to EQT Exeter to provide repeat real estate solutions around the world. In doing so, the Fund seeks to provide stable cash flow for its investors by acquiring high occupancy, long term leased industrial assets. In our view, the Fund is also poised to generate growth in capital values due to extraordinary rental rate growth in the industrial sector.

With consistent top ventile (5%) returns in the Cambridge Associates benchmarks for value funds1 and top quartile returns in the Preqin benchmarks for core/core-plus funds2, EQT Exeter is one of the leading global industrial investment managers. Over the last 15 years, the Firm has closed 900 industrial investments, leading to industrial assets under management as of 30 June 2022, that total nearly USD 30 billion in gross asset value.

This sustained outperformance is driven by EQT Exeter’s over 375 employees, across more than 50 offices in 20 countries, whose local-with-locals approach provides a keen selection of submarkets and properties, and whose insights into tenant demand are informed by over 1,200 tenant relationships cultivated for a decade and a half. We believe that the Fund’s closed-end structure and EQT Exeter’s vertical integration, with deep roots in design and development, allow the Fund to select the most functional, modern investments, and conversely avoid the obsolescence often embedded in open-end alternatives.

Gardner Ellner, Brian Serpico, and Tom Meehan are Portfolio Managers of the Fund. Ellner commented, “With our strong history of a hands-on approach to leasing, tenant relationships and asset management, we believe that EQT Exeter’s 24 local teams are better positioned than ever to identify and execute on attractive core-plus investments as we navigate the risks and opportunities of the current capital markets environment.”

Ward Fitzgerald, Head of EQT Exeter, said, “I would like to thank our existing and new investor partners for their support of EQT Exeter’s US industrial core-plus fund series. When also considering the recent close of our US Office Life Science Value Fund II, these successful fundraises enable us to secure the benefits of scale for our clients: helping our investor clients build a diversified real estate portfolio of which these funds are a component, and offering our tenant clients comprehensive real estate solutions across property types. Most importantly however, we know in this tumultuous cycle of inflation, our clients’ beneficiaries – retirees, teachers, police, fire, and medical workers, and civil servants need increased performance of their pensions to pay bills and live without anxiety. We look forward to continuing to serve our customers as one of the highest-performing real estate investment managers in the world.”

Contact

US media inquiries: Stephanie Greengarten, [email protected], +1 646-687-6810

International media inquiries: EQT Press Office, [email protected], +46 8 506 55 334

About EQT Exeter

EQT Exeter is a global real estate solutions provider serving corporate and consumer tenants with scope and scale. EQT Exeter is among the largest real estate investment managers in the world, focused on acquiring, developing and managing logistics/industrial, office, life science and residential properties in Europe, the Americas and Asia. EQT Exeter was created through the combination of Exeter Property Group and EQT.

A global leader in sheds, beds, and meds, EQT Exeter currently oversees a portfolio totaling over 350 million square feet across 1,800 buildings, while executing a tenant-centric strategy. The EQT Exeter Team comprises more than 375 experienced professionals operating in more than 50 offices around the globe. Together, they have consummated over 900 real estate investments. As part of EQT, the team leverages the firm’s industry-leading sustainability credentials and framework and in-house digitalization skills to generate increased value for its investor clients.

About EQT

EQT is a purpose-driven global investment organization with EUR 77 billion in assets under management as of 30 June 2022, across 36 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and the Americas with total sales of approximately EUR 29 billion and more than 280,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.