Slate Asset Management (Slate), a global alternative investment platform focused on real estate, has acquired a portfolio of 25 grocery-anchored real estate assets in Norway for NOK 1 bn (€100 mln).
The acquisition – Slate’s first in the Nordics – further expands the firm’s European platform and significantly increases Slate’s exposure to high-quality essential real estate assets in broader Europe.
The portfolio comprises 50,000 m2 geographically dispersed across Norway, with the majority concentrated in and around Norway’s five largest cities. The entirety of the portfolio’s income is generated by essential goods and service providers, including 24 grocery stores let to class-A tenants and one government-tenanted medical facility. The portfolio’s three major operators are Norwegian grocery groups Coop Norge, Reitan Group and NorgesGruppen, which hold around 96% of the total grocery market share in Norway.
'We are actively increasing our exposure to essential real estate throughout Europe, and this transaction is an exciting opportunity for us to acquire a portfolio of high-quality assets in a new and growing market at a very attractive basis,' said Brady Welch, founding partner at Slate Asset Management. 'Against the backdrop of Norway’s robust economy and leadership in environmental performance, we believe we can unlock significant value for our tenants and our partners by investing thoughtfully to make these properties even more modern, sustainable and resource efficient.'
The acquisition is a continuation of Slate’s strategy focused on stabilized grocery and essential real estate assets throughout Europe, which facilitate the distribution of essential goods and services to end consumers. These assets have proven to be defensive in nature, with income streams that can withstand periods of economic instability, Slate's Welch added. 'The essential tenants occupying these properties are exceptional quality businesses with consistently strong and stable performance. As we look to continue deploying capital in this sector, this portfolio strengthens our track record and provides an ideal platform for future investments in the Nordic region'
Schjødt, Union Norsk Naeringsmegling, Pareto Securities, BER as well as KPMG Norway advised Slate on this transaction, which is expected to close in December 2021.