EQT Real Estate Expands Portfolio with Major Logistics Acquisition in Northern Italy

EQT Real Estate's Strategic Expansion in Northern Italy

EQT Real Estate, through its EQT Exeter Logistics Value Fund IV, has made a notable move by entering into a substantial agreement to acquire a top-tier logistics portfolio in Northern Italy, specifically targeting the burgeoning submarkets of Milan and Verona. This acquisition, valued at approximately EUR 230 million, marks a significant step in the firm's commitment to growth within the European logistics landscape.

The portfolio consists of 12 high-quality logistics assets, amounting to a total area of 265,000 square meters. Each property is ready for occupation and fully leased, presenting a weighted average lease term of 4.3 years. This presents an attractive position for potential rental growth and value enhancement. With modern specifications, including an average building age of just ten years and Grade A characteristics, these properties are engineered to meet the evolving demands of today’s logistics operators.

Key Features of the Acquisition

The strength of this real estate assemblage lies in its strategic location, providing direct access to major distribution routes along vital motorways such as the A1, A4, and A22. This connectivity is essential for reaching significant population hubs, encompassing over 12 million residents. The properties boast essential features for logistical operations, including an average eaves height of 11 meters and facilities designed for efficient loading and maneuvering, catering to the needs of a broad tenant base.

John Toukatly, Partner and Chief Investment Officer of European Logistics at EQT Real Estate, expressed enthusiasm about the acquisition, stating, "We are thrilled to incorporate this high-quality logistics portfolio into our fund. Strategically located in supply-constrained markets, these assets appeal to a broad array of prominent big box occupiers. Our approach focuses on acquiring modern logistics assets in underserved European markets. Through our operational and asset management expertise, we aim to unlock additional value from these properties."

Strengthening Presence in Italy

The acquisition reflects EQT Real Estate's targeted strategy to deepen its engagement with the Italian logistics market, which is witnessing robust demand amid a competitive European landscape. By consolidating its footprint in the Greater Milan area, EQT aims to leverage its local knowledge and expertise to maximize value creation and capitalize on future rental growth opportunities.

Paolo Bottelli, Founder and CEO of Kryalos SGR, emphasized the strategic nature of this transaction, noting, "This acquisition highlights the resilience and liquidity of the Italian logistics real estate market. We are excited to partner with EQT to facilitate their investment strategy in Italy, ensuring the long-term value of these assets through our dedicated management."

Conclusion

EQT Real Estate’s acquisition of this extensive logistics portfolio positions them favorably within a dynamic market poised for growth. Their commitment to deploying a differentiated, hyper-local approach aims to cultivate significant opportunities in an area essential for logistics. With the ongoing expansion of e-commerce and increasing globalization, the logistics sector is becoming ever more crucial, making this acquisition a timely and strategic decision for EQT's future endeavors in the industry.