Slate Asset Management acquires two essential real estate portfolios in Germany for combined EUR72m
Slate Asset Management (Slate) has acquired two essential real estate portfolios in Germany by its Slate European Real Estate Fund III.
Each transaction was conducted with a separate independent seller for an aggregate purchase price of EUR72 million, enhancing Slate’s exposure to essential real estate assets across Europe.
The portfolios comprise approximately 60,000 square meters across Germany and are currently leased to leading grocery and other essential-use tenants. Both transactions are expected to close in the first quarter of 2021. Goodwin Procter LLP acted as the legal advisor to Slate on both transactions. Cushman & Wakefield and JLL acted as advisors to the sellers on these transactions.
“Today’s acquisitions further demonstrate our European team’s ability to identify defensive real estate assets at a discount, while also highlighting our capacity to transact in a time of economic volatility,” says Brady Welch, Slate's London-based Founding Partner. “Both portfolios have performed well throughout the Covid-19 pandemic, providing essential goods and services to consumers on a daily basis even throughout lockdown periods. We continue to see attractive opportunities focused on grocery and essential-use real estate across Europe and look forward to deploying further capital across the continent.”
Slate European Real Estate Fund III closed in March 2020 having raised EUR250 million, hitting its hard cap and exceeding original targets. Both acquisitions announced today are in line with Slate’s investment thesis to acquire essential-use real estate across Europe that delivers strong returns for investors. Grocery-anchored and essential-use real estate assets have demonstrated resilience throughout the Covid-19 pandemic, exhibiting strong footfall and impressive rent collections. Since December 2016, Slate has completed 258 grocery and essential real estate property acquisitions in Europe comprising more than 490,000 square meters of gross leasable space. Slate’s European offices are located in London, Frankfurt, Dublin and Luxembourg.