EQT Real Estate logistics fund reaches final close at €3.1bn

EQT Real Estate has announced the successful final close of EQT Real Estate Europe Logistics Value Fund V, securing total commitments of €3.1 bn.

EQT Real Estate Europe logistics

The fund exceeded its €2.5 bn target and represents a 42% increase compared with its predecessor fund, which raised €2.2 bn at its close in July 2021. Capital was committed by a broad and diversified international investor base, comprising pension funds, sovereign wealth funds, asset managers and insurance groups, spanning the Americas, Asia-Pacific, the Middle East and Europe.

Fund V continues EQT Real Estate’s established strategy of acquiring and developing high-quality logistics assets across Europe, with a focus on major consumption hubs and key distribution routes. The fund invests across the full logistics spectrum, including big-box, mid-box and last-mile facilities.

EQT Real Estate currently manages over 550 logistics properties totalling approximately 10.2 million m² across the region and brings extensive operational expertise in leasing, development and asset management.

Henry Steinberg, global head of EQT Real Estate, said: “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.”

John Toukatly, partner and CIO, Europe Logistics, added: “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 normalise, financing conditions for well-located and well-let assets remain robust, and supply remains constrained across the majority of key submarkets."

Separately, Deutsche Pfandbriefbank announced it has co-underwritten a €214 mln investment facility to support EQT Real Estate’s portfolio of eight prime logistics assets across the Czech Republic and Poland. The financing was arranged alongside Société Générale, a leading European banking institution based in Paris.

The portfolio totals approximately 370,000 m2 of modern logistics and warehouse accommodation, strategically positioned with direct access to major motorways and express routes. All assets are fully leased to a diverse range of tenants and demonstrate strong ESG performance credentials.