Brixmor, Everview to Buy Slate Grocery REIT for $2.3B
Brixmor Property Group and Everview Partners have agreed to acquire Slate Grocery REIT in an all-cash transaction valued at approximately $2.3 billion, bringing Slate’s strategic review to a close and expanding Brixmor’s grocery-anchored shopping center business. Slate unitholders would receive $13 per unit.
The offer is about 13% above Slate’s May 21 closing price, before it announced the review, and about 20% above its Sept. 23 closing price, before it disclosed a suspension of monthly distributions. Slate said the suspension was intended to give it greater financial flexibility during the review.
The buyers plan to divide Slate’s 115 shopping centers. Brixmor will effectively acquire 23 properties totaling about 3 million square feet for $636 million. They are about 96% leased and sit within its existing operating markets, primarily in Florida, Georgia and the Carolinas.
A new joint venture will acquire the other 92 centers, totaling roughly 12 million square feet, for $1.71 billion. Everview will hold 80% of the venture’s common equity and Brixmor 20%. Brixmor will manage and lease those properties and make an approximately $174 million preferred equity investment carrying a 9% dividend. A subsidiary of the Abu Dhabi Investment Authority will invest alongside Everview.
Brixmor said rents across the acquired portfolios average 32% below those at its existing properties, pointing to potential income growth as leases turn over. It also identified about $100 million in possible redevelopment and outparcel projects within the 23-property portfolio.
The transaction is expected to close in the first quarter of 2027.
Evercore Group L.L.C. is acting as exclusive financial advisor to the Special Committee. CIBC World Markets Inc. has been retained as financial advisor to the Special Committee to provide an independent fairness opinion to the Special Committee and the Board. Fasken Martineau DuMoulin LLP and Sidley Austin LLP are acting as independent legal counsel to the Special Committee. Raider Hill Advisors, L.L.C. is acting as exclusive special real estate advisor to the Special Committee.
Hogan Lovells Cadwalader US LLP is acting as legal counsel to Brixmor, Simpson Thacher & Bartlett LLP is acting as legal counsel to Everview, and Davies Ward Phillips & Vineberg LLP is acting as Canadian counsel for Brixmor and Everview.
RBC Capital Markets is acting as lead financial advisor and Wells Fargo Securities is acting as a financial advisor to Brixmor and the Purchaser. Cushman & Wakefield is acting as real estate advisor to Brixmor. McCarthy Tétrault LLP is acting as legal counsel to the Manager and NA Essential.