EQT AB reported the signing of agreement with Exeter Property Group to purchase for a total consideration of USD 1.87 Billion. The deal is comprised of new EQT AB shares of USD 800 Million and cash consideration of 1.07 Billion which includes a refinancing of USD 300 Million of existing Exeter debt. This plays at EQT AB’s previous strategic growth plans within real estate and a scaled investment platform across North American and Europe. It provides management with the capability to continue their performance as top real estate investment manager. Christian Sinding, CEO and Managing Partner of EQT AB: “We are excited to accelerate our strategy of building a globally-scaled real estate platform and diversifying the firm within private markets by joining forces with Exeter. We have a high bar for strategic M&A, and Exeter is one of the few opportunities we have identified which clears and well surpasses it. With its value-creation-focused investment approach, one of the strongest track-records in value-add real estate globally, and importantly, a people-and-performance-centric culture, we are all well-aligned. I am delighted to welcome Ward and the Exeter team to the EQT family, and we are looking forward to working together to take EQT Exeter to the next level.”
Lennart Blecher, Head of EQT Real Assets and Deputy Managing Partner: “Scaling EQT’s real estate platform has been a key priority for EQT Real Assets. The combination of Exeter and EQT’s existing real estate business is highly complementary and creates a leader in thematic value-add real estate investments, allowing EQT to scale up local execution while also adding a prolific single asset deal platform. Exeter is a hidden gem with very strong performance due to a clear operational mindset. We believe this is synergistic for both parties, with EQT able to bring multiple benefits to the Exeter business with the strength of our industry and client relationships and our future-proofed operating platform.”
EQT AB will acquire 100% of Exeter management company. Ward Fitzgerald and other key Exeter management shareholders will receive 65% of consideration in the newly issued EQT AB ordinary shares and 35% in cash.