EQT Secures $268M Facility for 11-Property Logistics Acquisition
EQT Real Estate has acquired11 logistics portfolios across major markets in the U.S. Simultaneously, the investment firm's Core Plus Fund IV was supplied with a $268 million facility from ING Capital LLC to support the purchase.
The portfolio spans 2.8 million square feet; the exact regions were not listed, but they are positioned "across six high-growth US logistics markets," according to a statement from ING. The average weighted lease term is seven years on the properties.
This marks another chapter in the relationship between EQT and ING, which has worked together in both the U.S. and European markets. About a month ago, ING's Wholesale Banking unit issued a $4.4 billion sustainability-linked capital call facility to BPEA Private Equity Fund IX, another EQT-managed fund.
The latest $268 million facility provides EQT with speed and flexibility, according to Brian Ford, managing director of the borrower.
"This transaction reflects the creative, flexible financing solutions our real estate team is able to bring to sponsors navigating complex portfolio acquisitions," Craig Bender, managing director and head of commercial real estate for the Americas at ING Capital LLC, said in a statement.
"Logistics fundamentals remain strong, and we are pleased to support EQT Real Estate, one of the premier real estate platforms in the US. This deal reflects our commitment to supporting our most important sponsor clients across sectors, products and ING's global network."
The new portfolio for EQT is fully leased to tenants involved in a range of industries including food and beverage, e-commerce, bulk transport, aviation and packaging. Most of the tenants (63 percent) are in bulk distribution, followed by light industrial (26 percent). Some features found in the properties include 33-foot average clear heights and high dock doors, which average 22 per asset.
This year, the Radnor, Pennsylvania-based firm has made at least two other major transactions in industrial. This includes teaming up with Americold Realty Trust on a$1.3 billion cold storage joint venture of at least 12 assets and a purchase of a 25-warehouse portfolio in March for $575 million.
Source: GlobeSt/ALM