Slate Grocery REIT to Acquire $425 Million Grocery-Anchored Real Estate Portfolio; Blair Welch Details
TORONTO, ONTARIO, CANADA - A tactical acquisition plan has led to the formation of a new joint venture in the grocery space. Slate Grocery REIT has announced plans to acquire 14 grocery-anchored real estate properties for a total of $425 million. The acquisition includes 2.5 million square feet across seven states, with over two-thirds of the property value being allocated to the Southeastern United States.
"This acquisition and joint venture illustrate the value and resources Slate Asset Management brings to all of our managed entities," said Blair Welch, Chief Executive Officer of Slate Grocery REIT and Founding Partner of Slate. "Our global reach and track record facilitate these creative solutions for capital and deals that enable the REIT's continued growth and ensure we are providing the best value to the REIT's unitholders. We are very pleased to establish this partnership between Slate Grocery REIT and the Slate North American Essential Real Estate Income Fund, which demonstrates confidence from a leading institutional investor in the REIT's strategy, management, and valuation."
In addition, the REIT also announced that it has entered into agreements with Slate North American Essential Real Estate Income Fund L.P. (NA Essential Fund), resulting in the formation of a strategic new joint venture. According to a press release, the NA Essential Fund has agreed to make an initial investment of $180 million into the REIT's assets through the purchase of partnership interests in two REIT subsidiaries, and proceeds from the Investment will be used immediately to fund the REIT's Acquisition.
The closing of the investment and acquisition is expected to occur on July 14, 2022. Following the transaction, the REIT's portfolio will comprise 15.7 million square feet and $2.4 billion of essential grocery-anchored real estate.
To read more about this acquisition and strategic joint venture, click here.
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