EQT Real Estate, represented by the EQT Real Estate Industrial Value Fund V, has completed the sale of a substantial logistics portfolio. The portfolio comprises 20 properties and a total area of approximately 409,000 square metres. The assets are strategically located across six markets in the Midwestern United States, including St. Louis, Cincinnati, Columbus, Dayton, Cleveland and Louisville.
These locations provide tenants with a central position within the US national freight transport network. The ability to reach almost half of the US population within a day's drive represents a significant locational advantage. Furthermore, the mentioned markets are characterised by a stable supply and demand ratio and a large labour pool, which underpins the continued need for functional logistics space.
Property Characteristics and Tenant Structure
The portfolio's tenant base originates from various sectors, including e-commerce, contract logistics (3PL), distribution and light manufacturing. The spaces utilised range from modern large distribution centres to smaller industrial properties in urban locations. Technically, the buildings are distinguished by features such as cross-docking and rear-loading systems, an average clear height of around nine metres, and generous lorry manoeuvring areas. These specifications ensure high flexibility to meet diverse space requirements.
As part of EQT Real Estate's value creation strategy, both the earning power and the structural quality of the properties were significantly enhanced by local teams during the holding period. This included measures such as letting vacant spaces, as well as targeted investments in building extensions, refurbishments and roof renewals. The result is a stabilised portfolio whose size and quality continue to be attractive for institutional capital in the US logistics market.
Strategic Rationale for the Transaction
Matthew Brodnik, Global Chief Investment Officer at EQT Real Estate, stated that functional buildings in the relevant submarkets of the Midwest serve one of the country's most consistent logistics demands. This demand is supported by labour availability, excellent motorway connectivity and proximity to end customers. He highlighted that the teams had detailed knowledge of the properties and their submarkets, which shaped the approach to acquiring, letting and upgrading the portfolio during the ownership period. Brodnik described the sale as the logical culmination of this work. EQT Real Estate was advised on this transaction by John Huguenard, Trent Agnew and Will McCormack of JLL.
