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Private equity firm EQT has announced plans to acquire a portfolio of warehouses in northern Italy for €230 million ($241 million) as part of its strategy to capitalize on the growing demand for logistics centers in Europe.

The deal, unveiled Monday, involves EQT Exeter Logistics Value Fund IV acquiring 12 fully-let logistics assets from Italian asset manager Kryalos SGR SpA. The warehouses, spanning 265,000 square meters, are situated near Milan and Verona, key distribution hubs with access to major motorways and a population reach of over 12 million people.

Growing Interest in Logistics Assets

John Toukatly, European logistics chief investment officer and partner at EQT Exeter, emphasized the strategic value of the acquisition. “The transaction aligns well with our focus on acquiring highly reversionary, modern logistics assets in under-served European markets,” Toukatly said in a statement, adding that the warehouses are expected to appeal to a diverse range of transportation sector players.

The facilities are leased for an average term of 4.3 years, underscoring their stability and immediate revenue-generating potential. EQT’s move highlights the continued appeal of logistics real estate amid increased e-commerce demand and supply chain optimization efforts across Europe.

Italian Logistics Market Shows Strength

EQT’s acquisition comes at a time when Italy’s logistics sector is experiencing rapid growth. A report by Colliers revealed "exceptional performance" in the third quarter of 2024, with the market valued at €635 million. This marks a 33% rise compared with the first half of the year. According to Colliers, factors such as limited supply, rising construction costs, and higher financing expenses have driven rental values upward in major Italian markets.

Paolo Bottelli, founder and CEO of Kryalos, noted the transaction’s significance. “This deal underscores the strength and liquidity of the Italian logistics real estate market, which continues to attract investors looking to establish or grow their presence in this rapidly expanding sector,” Bottelli said in a statement. Kryalos, with a team of 125 professionals, manages assets worth €13.8 billion across Italy.

Logistics Deals Gain Momentum

EQT's acquisition is part of a broader trend in the Italian logistics market. In July, real estate investment trust Segro PLC disclosed that its joint venture in Europe sold four warehouses in Italy for €327 million. This flurry of activity highlights the robust demand for high-quality logistics assets in the country.

Strategic Appeal for EQT

EQT’s investment in strategically located warehouses reflects its long-term commitment to the European logistics sector. With direct access to vital transportation networks, the properties are well-positioned to meet the needs of tenants seeking efficient distribution solutions in a competitive market.

Counsel details for EQT Exeter and Kryalos SGR SpA were not disclosed. Both companies did not immediately respond to requests for comment.