(Bloomberg) -- Sweden’s EQT AB, one of Europe’s biggest private equity firms, has agreed to take over real estate investment manager Exeter Property Group in a deal worth $1.9 billion.

EQT will pay about $800 million in new shares and the rest in cash for closely held Exeter, the Stockholm-based firm said on Tuesday. The agreement gives it access to a U.S.-based property business with more than $10 billion in assets under management.

The deal forms part of EQT’s strategy to grow in real estate, an asset class that’s become increasingly popular among institutional investors after years of ultra-low interest rates.

EQT said the cash portion of its payment for Exeter, which is majority-owned by Ward Fitzgerald as well as members of management, includes refinancing $300 million of existing Exeter debt. The deal “is expected to be accretive to EQT’s earnings” this year, it said.

JPMorgan acted as financial adviser to EQT in relation to the transaction, while Kirkland & Ellis and Vinge acted as legal counsel. Berkshire Global Advisors assisted Exeter, and Goodwin Proctor acted as its legal counsel.

Story Link: EQT Agrees to Buy Exeter Property Group for $1.87b

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