EQT Real Estate has held the final close of its Europe Logistics Value Fund V at €3.1 billion in total commitments, including €3.0 billion in fee-generating assets under management. The fund exceeded its €2.5 billion target and represents a 42% increase over its predecessor, which closed at €2.2 billion in July 2021. It is the largest pan-European, sector-specific, closed-ended real estate fund ever raised.
The fund received commitments from a diversified group of institutional investors including pension funds, sovereign wealth funds, asset managers, and insurance companies across the Americas, Asia Pacific, the Middle East, and Europe. It will continue EQT Real Estate’s strategy of acquiring and developing modern logistics assets across Europe, targeting key consumption centers and distribution corridors across the full spectrum of logistics real estate, from big box and mid box warehouses to last mile facilities.
EQT Real Estate manages more than 550 logistics buildings totaling approximately 110 million square feet throughout Europe, supported by an integrated team of more than 140 professionals across 23 European cities and a global network of over 1,900 tenant relationships. The fundraise comes as logistics occupational demand continues to benefit from structural tailwinds including e-commerce growth, increased government and infrastructure spending, and supply chain modernization, while new supply remains constrained due to planning restrictions, land scarcity, power connectivity challenges, and elevated financing costs.
KEY QUOTES:
“Achieving such a successful fundraise is an important milestone for EQT Real Estate and underscores the trust we’ve built over decades and the strength of our global platform, defined by deep local execution and a powerful global perspective. The structural tailwinds driving investment in European logistics are as strong as ever, and we’re excited to continue executing our strategy as we seek to deliver modern, future-proofed assets in markets where tenants need them the most.”
Henry Steinberg, Global Head, EQT Real Estate
“The current market environment is presenting some of the most attractive entry pricing we’ve seen in European logistics in nearly a decade. Pricing across the risk spectrum continues to normalize, financing conditions for well-located and well-let assets remain robust, and supply remains constrained across the majority of key submarkets. Against this backdrop, EQT Real Estate is well-positioned to unlock meaningful long-term value where our scale and expertise serve as key differentiators.”
John Toukatly, Partner and Chief Investment Officer, Europe Logistics, EQT Real Estate
