The 85,000 sqm portfolio is well diversified and offers value creation potential through lease re-gears, light CAPEX and energy optimization programs. This investment will be EQT Real Estate’s 12th to date and fourth in Sweden.
EQT Real Estate continues to invest in the dynamic urban logistics sector via the proprietary acquisition of 21 properties with a lettable area of 85,000 sqm. The seller is Kvalitena, which will retain a minority stake, will continue to asset manage the properties and will look to grow the portfolio together with EQT.
The properties are located in established industrial zones close to the city centers of Stockholm and six university cities in central Sweden with attractive demographic and economic growth prospects. The Fund’s target is to continue acquiring assets with the same potential of rent reversion and conversion to modern, flexible space.
Henrik Orrbeck, Managing Director at EQT Partners and Investment Advisor to EQT Real Estate, says:
“The portfolio very well accentuates the focus of EQT Real Estate – buying and building real estate portfolios around selective investment themes and transforming them to high-quality platforms offering long-term risk-adjusted returns to institutional investors. EQT has a detailed plan for each property and looks forward to launching these initiatives together with Kvalitena”.
Robert Rackind, Partner and Head of Real Estate at EQT Partners, Investment Advisor to EQT Real Estate, continues:
“This off-market transaction represents a rare opportunity to build a platform around the supply-constraint urban logistics sector with an experienced partner. The acquisition is in line with EQT Real Estate’s strategy to future-proof cities by providing flexible warehouse space to expansive e-commerce, distribution and exportation-driven industrial firms.”
The transaction closed on 5 July 2019. EQT Real Estate was advised on the acquisition by Linklaters, Wigge & Partners, ÅF Consulting, Svalner and Amblin.