EQT Exeter, the property affiliate of Swedish private equity firm EQT AB, launched a real estate investment trust as part of its expansion into the private wealth business.
The new REIT, called EQT Exeter Real Estate Income Trust, is targeting commercial real estate bets in the US, such as industrial, life science, multifamily and self-storage properties, according to a statement Thursday. The non-traded REIT is offering as much as $5 billion of shares.
EQT Exeter currently manages $30 billion in real estate assets. The company has invested in the US, as well as countries including Mexico, Brazil and parts of Europe and Asia.
In recent years, a slate of private equity firms including Blackstone Inc. and KKR & Co. rushed to build new REITs. Blackstone Real Estate Income Trust, which has a net asset value of $68 billion, became a massive player in the industry, but has faced heightened withdrawal requests in recent months as investors became more hesitant about locking up cash in commercial property.
The commercial real estate industry is dealing with the ripple effects of a surge in borrowing costs and changing demand for certain assets such as offices. That’s fueled a 16% decline in prices from a peak in March 2022, according to real estate analytics firm Green Street. Still, a subset of wealthy investors have been hunting for deals at a time when others are pulling back.
EQT Exeter Real Estate Income Trust “will generally seek to invest approximately 80% in properties with business tenants, such as industrial or life science properties, and approximately 20% in real estate assets with consumer users, such as multifamily or self-storage properties,” EQT Exeter said in the statement.
(This news/press release has not been altered by investment.net, apart from the headline, and has been obtained from a syndicated source:- https://www.bnnbloomberg.ca/eqt-exeter-creates-new-reit-for-us-commercial-property-bets-1.1954636)