Sweden’s EQT to buy US-based Exeter Property Group for $1.9bn

Swedish private equity firm EQT has agreed to buy US real estate investment manager Exeter Property Group for $1.9bn in cash and shares.

The consideration comprises $800m in new shares and the rest in cash.

EQT said on Tuesday that the deal is part of its strategic growth ambitions within real estate and creates a scaled thematic investment platform across North America and Europe. "It also provides Exeter management with the ability to continue their track-record as a top performing real estate investment manager," it said.

EQT chief executive and managing partner Christian Sinding said: "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.”

Exeter Property has more than $10bn of assets under management.

EQT shares surged on the news and by 1315 GMT, were trading up 21% at SEK269.80.