Slate Grocery REIT, an owner and operator of U.S. grocery-anchored real estate, has agreed to acquire a grocery-anchored portfolio comprising 25 properties and 3.1 million square feet in major metro markets across the United States.
Slate Grocery REIT said the portfolio is valued at US$390 million and is being acquired for an equity purchase price of US$90 million and the assumption of existing debt.
The acquisition represents a 7.8% capitalization rate or US$127 per square foot.
“This is a compelling and unique opportunity for the REIT to acquire US$390 million of quality grocery-anchored assets on an off-market basis that importantly generates immediate accretion for unitholders,” said David Dunn, Chief Executive Officer of Slate Grocery REIT.
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“This transaction increases our exposure to America’s largest metropolitan markets at an attractive cost basis and deepens our relationships with leading omnichannel grocers whose neighborhood stores will continue to serve as critical food distribution points for both in-store and online purchases,” he added.
The portfolio is anchored by market leading grocers including Tops and Market 32 (Price Chopper), Tom Thumb (Albertson’s), Kroger, Stop & Shop (Ahold Delhaize), Acme Markets (Albertson’s) and Walmart among others.
The company said essential tenants comprise 74% of the portfolio’s income including 39% from grocers.
The acquisition is expected to close by the middle of 2021.
