Slate Asset Management holds final close of Slate Real Estate Capital I
Slate Asset Management (Slate), a global alternative investment platform focused on real estate, has held the final close of Slate Real Estate Capital I (SREC I).
SREC I has also completed the first closing with respect to the previously announced USD2.33 billion acquisition of the Commercial Real Estate Business of Annaly Capital Management. The portion of the portfolio being acquired by Slate Grocery REIT (TSX: SGR.UN/SGR.U) is still pending and is expected to close in the third quarter of 2021.
SREC I is Slate’s inaugural debt focused investment vehicle. The fund was oversubscribed with third-party capital commitments from a global group of new and existing institutional investors, including a preferred equity investment from Goldman Sachs Asset Management’s Vintage and Vintage Real Estate Partners Funds. This investment further builds on Slate’s existing partnership with Goldman Sachs Asset Management.
“Our primary focus at Slate is to create long-term value for our investors, and we are very pleased to be deepening and expanding our relationships with valued partners like Goldman Sachs Asset Management and other global institutional investors," says Blair Welch, Co-founding Partner of Slate. "With the initial close of this transaction, our platform and team are now set up to capitalise on compelling and creative investment opportunities across the entire capital stack.”
“By bringing to bear scale and in-depth underwriting capabilities, Slate and the Vintage Funds were able to structure a multi-faceted investment and acquire a high-quality portfolio of real estate credit positions that combines downside protection and attractive return potential,” says Sean Brenan, Managing Director at Goldman Sachs Asset Management.
The acquisition will further expand Slate’s investment capabilities, enabling the firm to execute bridge and transitional lending, acquisitions of existing loans, investments in debt securities and provide flexible liquidity solutions to strong sponsors and assets.
Slate is welcoming a group of new team members as part of the transaction and has hired additional professionals to ensure a seamless transition of the portfolio. The team members will join Slate’s offices in Chicago, New York, Dallas and Los Angeles.
BMO Capital Markets served as financial advisor and Goodwin Procter LLP and McCarthy Tétrault LLP as legal advisors to Slate during the transaction.