Brixmor, Everview to Acquire Slate Grocery REIT for $2.34 Billion

Brixmor Property Group Inc. and Everview Partners said Monday they have entered into definitive agreements to acquire Toronto-based Slate Grocery REIT in a transaction valued at $2.34 billion. Under the terms of the transaction and joint venture agreements, Brixmor will effectively acquire a portfolio of 23 grocery-anchored shopping centers aggregating approximately three million square feet for $636 million, while a newly formed institutional JV between Brixmor and affiliates of Everview will pay $1.71 billion for the remaining 92 assets.

Additionally, a wholly owned subsidiary of the Abu Dhabi Investment Authority will act as a strategic investor alongside Everview. The 23-asset portfolio Brixmor is acquiring is approximately 96% leased and located entirely within Brixmor’s existing operating footprint, predominantly across Florida, Georgia and the Carolinas.

“This immediately accretive transaction is directly aligned with our growth strategy, adding 23 grocery-anchored centers in markets we know well, with longstanding grocer relationships we plan to grow, while further leveraging our operating platform in a capital efficient joint venture with Everview,” said Brian T. Finnegan, Brixmor’s CEO and president. “Across both the wholly owned and joint venture assets, we see meaningful embedded value through below-market rents and a robust pipeline of remerchandising, redevelopment, and outparcel opportunities. We believe our extensive retailer relationships and proven execution capabilities will position us to unlock that value and generate meaningful cash flow growth over time.”

RBC Capital Markets, LLC is acting as lead financial advisor and Wells Fargo Securities is acting as a financial advisor to Brixmor and to the JV entity formed by Brixmor and Everview for purposes of the transaction. Cushman & Wakefield is acting as real estate advisor, and Hogan Lovells Cadwalader US LLP is acting as legal counsel to Brixmor.

Simpson Thacher & Bartlett LLP is acting as legal advisor to Everview. Davies Ward Phillips & Vineberg LLP is acting as Canadian counsel for Brixmor and Everview. Royal Bank of Canada has provided Brixmor with a bridge commitment to fully fund Brixmor’s required capital. Wells Fargo Bank, N.A., as administrative agent, and Royal Bank of Canada have provided a debt commitment to the joint venture. Wells Fargo Securities and Royal Bank of Canada will serve as joint bookrunners for the JV financing.

Pictured: Slate Grocery REIT’s Errol Plaza in Apopka, FL.