The real-estate unit of private-equity giant EQT AB has sold a portfolio of U.S. industrial real estate to a group led by an Asian sovereign-wealth fund in a deal that values the portfolio at $6.8 billion including debt, according to people familiar with the matter.
The deal for 328 industrial facilities carries one of the highest prices ever paid for U.S. industrial property, the latest sign of strength in the market for the warehouses and distribution centers that serve as the backbone of the e-commerce boom. It is scheduled...
The real-estate unit of private-equity giant EQT AB has sold a portfolio of U.S. industrial real estate to a group led by an Asian sovereign-wealth fund in a deal that values the portfolio at $6.8 billion including debt, according to people familiar with the matter.
The deal for 328 industrial facilities carries one of the highest prices ever paid for U.S. industrial property, the latest sign of strength in the market for the warehouses and distribution centers that serve as the backbone of the e-commerce boom. It is scheduled to be announced Wednesday morning, according to people familiar with the matter.
The properties serve major population centers, including the New York, Chicago and Los Angeles regions, and air-cargo hubs in places such as Memphis and Louisville. The sovereign-wealth fund wasn’t identified.
The portfolio had been managed by Exeter Property Group, which was acquired by Stockholm-based EQT this year when it made a push into U.S. real estate. EQT paid $1.87 billion in stock and cash for Conshohocken, Pa.,-based Exeter, which had more than $10 billion of industrial, residential and other assets under management.
Warehouses and distribution centers have been one of the hottest commercial-property types in recent years, thanks partly to the strong demand from e-commerce companies such as Amazon.com Inc. The strength of the sector intensified during the Covid-19 pandemic as consumers shunned bricks-and-mortar stores for fear of infection.
Analysts see smooth sailing ahead. “Asset values are up 17% over the last three months and 39% over the last year,” said real-estate data and analytics firm Green Street in a September report on the industrial sector. “Occupancy levels are near all-time highs and are expected to remain that way in the coming years.”
The industrial portfolio being sold, which totals 70.5 million square feet, was assembled by Exeter over three years through acquisitions and development. Under the terms of the sale, it will continue to be managed by EQT Exeter, the unit formed by EQT by combining Exeter Property with EQT’s existing real-estate business, according to people familiar with the matter.
EQT has more than €70 billion, equivalent to $81 billion, in assets and its focuses include real estate, technology, infrastructure and healthcare.
Write to Peter Grant at peter.grant@wsj.com
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