Brixmor Acquires Slate REIT
Brixmor and Everview Partners Agree to Acquire Slate Grocery REIT in $2.3B Deal
Anonymous
Brixmor Property Group and Everview Partners have agreed to acquire Slate Grocery REIT in an all-cash transaction valued at about $2.34 billion, offering unitholders $13 per unit. The offer represents a 13% premium to the units’ May 21 closing price, before Slate announced a strategic review, and roughly a 20% premium to the price before trading was suspended. Brixmor will acquire 23 grocery-anchored centers, while a joint venture will buy the remaining 92 properties; Everview will hold 80% of the venture’s common equity and Brixmor 20%, with Brixmor also providing preferred equity and managing and leasing the portfolio. The 23 centers Brixmor is buying are about 96% leased and located within its existing footprint, mainly in Florida, Georgia and the Carolinas. The deal requires Slate unitholder approval and is expected to close in the first quarter of 2027.
Key Points
1
A wholly owned subsidiary of the Abu Dhabi Investment Authority will participate as a strategic investor alongside Everview in the joint venture acquiring Slate’s remaining 92 properties.
2
Brixmor’s roughly $174 million preferred-equity investment in the joint venture carries a 9% annual dividend, distinct from its 20% common-equity stake.
3
Slate unitholders are set to receive a per-diem ticking fee on the $13-per-unit cash offer after January 20, 2027.
4
Management said rents in the acquired portfolios average about 32% below Brixmor’s current levels, creating potential to raise rents as leases expire and are renewed.
5
Brixmor will acquire full ownership of 22 of the 23 centers it is buying directly and a 50% interest in the remaining center; the properties include anchors such as Publix, Harris Teeter, Kroger and Aldi.
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