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  • Slate Grocery REIT (SGR.UN) has agreed to acquire 14 properties totalling 2.5 million square feet
  • The portfolio is valued at US$425 million, which represents a 6.9 per cent capitalization rate or US$174 per square foot
  • The portfolio is located across seven states with over two-thirds of the portfolio value being allocated to the Southeastern United States
  • The REIT has also signed agreements with Slate North American Essential Real Estate Income Fund L.P., which will result in the formation of a strategic joint venture
  • Slate Asset Management is a global alternative investment platform targeting real assets
  • Slate Grocery REIT was up 1.905 per cent, trading $14.44 at 2:39 PM ET

Slate Grocery REIT (SGR.UN) has agreed to acquire 14 properties comprising 2.5 million square feet.

The portfolio is valued at US$425 million, which represents a 6.9 per cent capitalization rate or US$174 per square foot.

The portfolio is located across seven states with over two-thirds of the portfolio value being allocated to the Southeastern United States.

In addition, the REIT announced that it has entered into agreements with Slate North American Essential Real Estate Income Fund L.P., a vehicle managed by Slate Asset Management, which will result in the formation of a strategic joint venture.

The NA Essential Fund has agreed to make an initial investment of US$180 million into the REIT’s assets through the purchase of partnership interests in two REIT subsidiaries.

Proceeds from the Investment will be used immediately to fund the REIT’s Acquisition.

One highlight of the acquisition is the significant concentration of assets in the rapidly growing Sunbelt Region.

Also it consists of a wide range of high-performing grocers, which increases the REIT’s exposure to leading national grocers.

It involves an attractive valuation and defensive basis, which includes low acquisition basis of US$174 per square foot with below market rents.

It significantly increases the size and scale of the REIT’s portfolio – The REIT’s pro forma portfolio will comprise 15.7 million square feet and US$2.4 billion of essential grocery-anchored real estate.

“This acquisition and joint venture illustrate the value and resources Slate Asset Management brings to all of our managed entities,” noted 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 unit-holders,” he added.

Slate Grocery REIT is an owner and operator of U.S. grocery-anchored real estate.

Slate Asset Management is a global alternative investment platform targeting real assets.

Slate Grocery REIT was up 1.905 per cent, trading C$14.44 at 2:39 PM ET.

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