Slate Asset Management has acquired a portfolio of grocery real estate assets in Germany for over €100 million in an off-market transaction from KRE//GROUP.
Slate said the portfolio comprises 30 properties strategically distributed in and around larger metropolitan areas in Germany with high potential for future turnover growth, including Berlin, Hannover, Cologne and Hamburg.
The portfolio’s major tenants are some of the largest essential goods distributors globally: Edeka Group, Rewe Group and Lidl.
With 93% of the portfolio’s income generated by essential, class-A tenants, the assets are well positioned to provide resilient, long-term cash flow, according to the company.
“Our ability to source and acquire this pure-play grocery portfolio in an off-market transaction speaks to the strong track record and network of relationships we’ve established in Germany,” said Brady Welch, Founding Partner at Slate Asset Management.
“We see an opportunity to step in and implement our hands-on asset management approach to elevate these properties to new standards of efficiency, modernity and performance and create value for our investors, tenants and surrounding communities,” he added.
This portfolio is Slate’s third acquisition in Germany in the second half of 2021. The firm acquired two additional portfolios with nine collective grocery and essential real estate assets in the third quarter of this year.
The transaction is expected to close in early 2022.