EQT has reached the final close of its second real estate fund with a €1bn hard cap, 33% above its initial €750m target.

The vehicle, EQT Real Estate II, was launched in 2018 and is over twice the size of its predecessor, wrapped up in 2017 at €420m. It aims to make direct and indirect investments from €40m to €200m in real estate assets, portfolios, operating companies and joint ventures in key European cities, the firm said.

Target opportunities include urban logistics and warehouse assets as a result of the ongoing shift towards e-commerce; residential investments, including for-rent housing, student accommodation, and senior living.

To date, the firm has already made four investments in Sweden, France, and the UK. It includes the acquisition of a majority stake in the Swedish-listed logistics real estate company Stendörren Fastigheter; and Saturn, a portfolio of around 3,000 affordable homes in London to be built through a £1bn joint venture with listed residential development and regeneration specialist Sigma Capital.

At the moment, EQT is also evaluating transactions in Germany, Spain, Italy and the Benelux region, the firm noted in a statement. “Beds and sheds” assets that are “benefitting from positive growth drivers and secular trends” are among investments the firm is currently pursuing, Robert Rackind, partner and head of EQT Real Estate, said.

The Swedish private equity firm said 35% of the fund was raised amid Covid-19, with the process being carried out digitally.

EQT currently has around €40bn in assets under management in private capital, real assets, and credit across 19 active funds. Backed by Sweden’s billionaire Wallenberg family, EQT was founded in 1994 and has grown rapidly in recent years, listing on the Nasdaq Stockholm in September last year.

Source: Private Equity News

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