EQT announced that EQT Exeter Industrial Value Fund VI had held its final close at $4.9 billion in fee-generating assets under management. And the demand from existing and new investors was strong, with commitments coming from a diverse group of pensions, foundations, insurance, and sovereign clients across 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 significant markets throughout the US and emphasizing single-tenant, modern supply chain assets, which include big box fulfillment center and last mile assets used by the world’s largest corporations to implement their delivery systems. And in the US and Mexico alone, EQT Exeter employs investment and leasing professionals across 25 offices who provide a keen selection of submarkets and properties and whose insights into tenant demand are informed by over 1,200 industrial tenant relationships.
EQT Exeter believes that current acquisition conditions are fertile, as the higher interest rate environment has reduced asset pricing. Meanwhile, sustained high occupancy nationally and the elevated cost of building new facilities have led to remarkable rental rate growth. The fund seeks to capitalize on these market fundamentals by utilizing EQT Exeter’s in-house, local leasing professionals to increase occupancy, reset rental rates to market levels upon lease expirations, and secure strong credit tenants who better withstand market cyclicality. EQT Exeter will also execute high-yielding ground-up construction using the team’s sophisticated in-house design and development expertise.
KEY QUOTES:
“We are grateful to our investors for their support, particularly during this challenging environment for making new fund commitments. 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.”
— Rayenne Chen, Global Client Solutions
“We look forward to assembling this portfolio amid significant pricing resets due to today’s choppy markets. 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.”
— Matt Brodnik, Chief Investment Officer, EQT Exeter
“The direct relationships we have developed with global logistics users have enabled us to serve as their essential real estate solutions provider. Winning their business will drive the Fund’s occupancy and value appreciation no matter the market cycle. Furthermore, we are developing analytic tools to leverage our in-house, locally sourced acquisition and leasing data across geographies and product types to make EQT Exeter an even more effective and informed operator.”
— Henry Steinberg, President, EQT Exeter
