EQT Exeter Shifts to Industrial, Exits US Multifamily Fund

Swedish private equity giant EQT Corp. (EQT) is making a bold pivot in its real estate strategy. It announced the closure of its US multifamily fund and a renewed focus on industrial assets.

Instead, EQT is going all-in on industrial properties, notably logistics and last-mile distribution buildings, in a bid to capitalize on the booming e-commerce and supply chain sectors, per Bisnow.

Moving Away From Multifamily

According to EQT’s Chief Financial Officer Kim Henriksson, the decision to dissolve the US multifamily fund comes after a difficult fundraising environment. The costs associated with winding down the multifamily fund, including the revaluation of investments, are estimated at $83N in net taxes.

The firm currently still has 34 multifamily properties in key markets, including California, Illinois, Texas, and Maryland, but it is now stepping away from the sector to focus on industrial.

In addition to scaling back multifamily and office investments, EQT sold properties, including a 207 KSF building in Houston valued at $42M earlier this month. This is part of a broader strategy to refocus the firm’s real estate portfolio to more stable, high-demand sectors like industrial real estate.

In The Name of Industry

EQT Exeter has been aggressively expanding its industrial holdings. In November, the firm acquired a 1 MSF purpose-built distribution building portfolio in Napa Valley, alongside 21 last-mile industrial buildings totaling 4.5 MSF across the Southeast, Midwest, and Texas.

This brings EQT’s total industrial portfolio to an impressive 60 MSF, signaling the firm’s belief in the logistics sector’s long-term strength.

Notably, EQT has also rebranded its real estate division. What was once known as EQT Exeter is now operating under the broader EQT Real Estate brand. The rebranding is part of the company’s efforts to streamline operations and unify its various real estate activities under a single name.

Why It Matters

EQT’s move to exit the multifamily sector and double down on industrial real estate reflects broader market trends. Demand for logistics and distribution spaces continues to rise, while challenges persist in office and multifamily investments.

With a hefty industrial portfolio now in place and a unified brand under EQT Real Estate, the firm is positioning itself for continued growth in the industrial space as it moves away from more volatile real estate sectors.