EQT acquires Exeter Property Group to boost real estate investing
The “combination”, as EQT terms this deal, is a part of its strategic growth ambition within real estate, to create a scaled thematic investment platform across North America and Europe. EQT will put $1.8bn totally, comprising new EQT AB shares $800m and $1.07bn in cash (including refinancing $300m of existing Exeter debt).
Exeter, which is majority owned by Ward Fitzgerald and other management team members, focuses on acquiring, developing and managing logistics/ industrial, life science/ office and residential properties across the US and Europe. Founded in 2006, Exeter is expected to generate an approximately $135m in revenues and $80m in EBITDA (excluding carried interest). Fitzgerald and other Exeter management shareholders will receive 65% of their consideration in newly issued EQT AB ordinary shares and 35% in cash and will join EQT AB, entering a lock-up agreement. Funds that are managed by TA Associates, which owns 40% of Exeter, will receive 25% in newly issued EQT AB ordinary shares (not subject to lock-up) and 75% cash. The transaction is expected to be completed in the second quarter of 2021, subject to customary closing conditions.