Slate Asset Management has acquired a portfolio of essential real estate assets located across Austria and Slovakia for €90 million.
The portfolio comprises approximately 66,000 square meters across nine single-tenanted assets, all of which are let on long-term leases to OBI, one of Europe’s largest DIY operators and a market leader in Austria and Germany.
Six of the OBI stores are geographically dispersed across Austria, including OBI’s Austrian headquarters in Vienna, which is centrally located within walking distance of public transit and several large residential developments.
The three Slovakian assets are long-leased, high-quality properties that are well located in larger Slovakian cities.
According to the company, essential real estate has proven to be a defensive asset class with resilient income streams and strong investment fundamentals.
”The hardware and DIY sector in particular has benefitted from strong performance over recent years and proven its resiliency throughout the pandemic, with stores widely remaining in operation,” said the company in a statement.
“We are pleased to be acquiring another stabilized, income-producing essential real estate portfolio that establishes a foothold for us in two rapidly growing European markets,” said Brady Welch, Founding Partner at Slate Asset Management.
“OBI is a staple of the European DIY landscape with consistently strong performance. This transaction not only increases our exposure to a market category that has proven to be necessity-based and highly defensive, but also further expands our network of relationships with a diversified group of leading essential goods providers in Europe,” he added.