EQT, the Stockholm-based alternative investment firm, has closed fund raising for its first real estate fund, having secured €420 mln in commitments.
EQT Real Estate I invests in value-add real estate assets with a focus on repositioning high-yielding properties and portfolios, predominantly in the office sector, in gateway cities in western Europe.
The investments will typically range between €50 mln and €200 mln, and the fund will have the support of the full EQT network, including 10 European offices and more than 250 industrial advisors.
Around 35% of the pledged equity for the fund has already been invested in four assets. The assets are Rue Lauriston, an office refurbishment project in central Paris; Smart Parc, a refurbishment project of two office buildings in western Paris; Technologiepark Köln in Cologne, a portfolio of seven income-producing office assets to be repositioned, and Täby Terass in the Stockholm area, a residential scheme of studio apartments.
Edouard Fernandez, co-head of EQT Real Estate and investment advisor to the fund, commented: 'The European real estate segment has long been dominated by North American private equity firms. With this fund, the market gets a new and exciting pan-European challenger that will be able to take advantage of the EQT signature combination of global reach and local people on the ground.'
The property fund was a 'natural next step' for EQT's real assets strategy, according to Lennart Blecher, head of EQT Real Assets. 'The responsible, sustainable development approach has always been a clear differentiator for EQT, and it’s going to be exciting to see the team apply this mindset also to the property sector.'
The fund is backed by a global investor base, and in addition received strong backing from Investor AB, EQT Partners and its affiliates.
EQT manages €36 bn in raised capital across 23 funds. EQT funds have portfolio companies in Europe, Asia and the US with total sales of more than €19 bn and 110,000 employees.
In September 2016, EQT completed the acquisition of Bilfinger SE's Building and Facility segment, which included property advisory GVA, for about €1.2 bn. The acquired business was renamed Apleona.
