EQT Exeter has sold a 70.5 million square foot industrial portfolio for $6.8 billion on behalf of its private real estate funds, EQT Exeter Industrial Value Fund IV, and related investment vehicles.
The buyer is a newly formed global partnership, which has engaged EQT Exeter to continue operating and managing the properties, the company said.
One of the largest US industrial real estate transactions ever, the portfolio is comprised primarily of logistics properties that serve the supply chains of major corporations, including facilities for “big box” regional distribution, e-commerce fulfilment, and last mile distribution.
The portfolio spans the Top 5 US distribution hubs of New York, Dallas, Atlanta, Chicago, and Los Angeles and the key e-commerce and air cargo hubs of Memphis, Indianapolis, Columbus, and Louisville.
EQT Exeter has assembled the portfolio through more than 100 transactions executed over three years, the company said. ”EQT Exeter raised occupancy in the constructed and standing assets from 55 percent initially to 95 percent at sale and increased the average unleveraged yield on cost from 4.8 percent initially to 6.9 percent.”
Ward Fitzgerald, Partner and Head EQT Exeter, said, “We are grateful to have the opportunity to deliver this transformational deal for our investors in the US industrial value funds, which have the #1 performance among all private real estate funds invested during the same time periods. We are humbled to serve the teachers, firefighters, public workers, and so many others whose retirements depend on EQT Exeter’s commitment to success. I am extremely proud of the entire US EQT Exeter team for their tireless, gritty efforts in acquiring, developing, leasing, and stabilizing this high-quality portfolio, enabling us to continue our track record as one of the highest-performing real estate investment managers in the world.”
Fitzgerald continued, “Furthermore, we are excited to continue collaborating with the buyers, our partners in a new venture as we operate the assets moving forward. Today’s transaction is the fourth multi-billion-dollar portfolio sale for EQT Exeter. Throughout our team’s long history, we have been laying the bricks of design excellence, leasing execution, and strong corporate tenant relationships to serve such partners with large-scale portfolios of the highest quality and the active management expertise to produce steady income and asset appreciation.”