ADIA unit backs $2.34 billion Slate Grocery buyout

ADIA subsidiary joins Brixmor, Everview in $2.34B Slate Grocery acquisition

A wholly-owned subsidiary of Abu Dhabi Investment Authority is investing alongside Brixmor Property Group and Everview Partners in the $2.34 billion acquisition of Canada's Slate Grocery REIT. The transaction splits Slate Grocery's portfolio of 115 US grocery-anchored shopping centers between Brixmor and a new joint venture, with ADIA's investment amount unknown.

Brixmor will acquire 23 grocery-anchored centers, owning 22 properties outright and holding a 50% interest in another, for $636 million. The remaining 92 properties, spanning about 12 million square feet, will be bought for $1.71 billion by the joint venture, with Brixmor holding a 20% common equity stake and Everview 80%.

ADIA's subsidiary will invest alongside Everview in the joint venture, potentially adding value through leasing, redevelopment and development. The transaction values Slate at approximately $2.34 billion, representing a 13% premium to its May 21 closing price and 20% over its September 23 price before distribution suspension.

Slate Grocery REIT owns and operates grocery-anchored open-air retail properties across the US, attracting institutional capital due to the steady customer traffic from supermarkets and other necessity-based tenants. Brixmor says the 23 properties acquired are about 96% leased, with existing rents 32% below Brixmor's current portfolio.