Global real estate investment manager EQT Exeter has closed its EQT Exeter Industrial Value Fund VI at $4.9 billion, exceeding the fund’s $4 billion target.
The fund pursues a value-add strategy to acquire, develop, renovate, lease, operate, and sell industrial properties serving major 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.
While acknowledging the prudence required amid global macroeconomic uncertainty, EQT Exeter believes that current conditions for acquisitions are fertile, as the higher interest rate environment has resulted in reduced asset pricing.
According to the company, sustained high occupancy nationally and the elevated cost to build 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 by utilizing the team’s sophisticated in-house design and development expertise.
“We are grateful to our investors for their support, particularly during this challenging environment for making new fund commitments,” said Rayenne Chen, Global Client Solutions. “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.”
Matt Brodnik, Chief Investment Officer, EQT Exeter, said, “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.”
Henry Steinberg, President, EQT Exeter, said, “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.”
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