EQT Exeter has raised an initial $1.5bn (€1.4bn) for its latest value-add US industrial real estate fund according to an investor.

Ohio Police & Fire Pension Fund said it backed the Exeter Industrial Value Fund VI’s first close with a $50m commitment.

EQT Exeter is seeking to raise $4bn for the US value-add industrial real estate fund which targets a gross internal rate of returns of 16% to 18%.

“The depth and breadth of Exeter’s platform, strength and consistency in Exeter’s track record over multiple cycles and the manager is well-positioned to invest in an environment where industrial fundamentals continue to be attractive,” the pension fund told IPE Real Assets.

Ohio Police & Fire has in the past backed the last four funds in the series.

The latest commitment by Ohio Police & Fire is part of the pension fund’s plan to maintain a high exposure to the booming industrial property sector.

Real estate makes up $2bn or 10.9% of Ohio Police & Fire’s $17.36bn total plan assets. The pension fund’s targeted allocation for real estate is set at 12%.

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