Slate Asset Management has acquired Annaly’s commercial real estate business. The price is $2.33 billion. The deal is expected to close in the middle of 2021. BMO Capital Markets is serving as financial advisor to Slate while Evercore is serving as financial advisor to Annaly.
CHICAGO, March 25, 2021 /PRNewswire/ — Slate Asset Management (“Slate”), a leading alternative asset management platform with a focus on real estate, has announced the acquisition of the Commercial Real Estate Business (“ACREG”) of Annaly Capital Management, Inc. (“Annaly”) for US$2.33 billion.
The acquisition includes a portfolio of performing real estate loans, debt securities and real estate equity positions. Members of the ACREG team will be joining Slate upon closing of the transaction.
“We believe this transaction is another example of Slate’s ability to find value for our partners and investors at an opportune time in the market cycle,” said Blair Welch, co-founding partner of Slate. “The acquisition of this platform further expands Slate’s core capabilities across the real estate capital stack. Combined with our investment platform, sophistication, institutional relationships and operational expertise, we are uniquely positioned to provide creative debt capital solutions in the current market environment. Additionally, we are very excited to have the ACREG team members join us at Slate.”
The acquisition from Annaly also includes a US$0.4 billion portfolio of grocery-anchored real estate assets located in major U.S. markets that will be purchased by Slate Grocery REIT (TSX: SGR.UN / SGR.U), Slate’s pure-play U.S. grocery-anchored business.
The transaction is subject to customary closing conditions, including applicable regulatory approvals. The closing is expected to be complete by the middle of 2021.
BMO Capital Markets is serving as financial advisor and Goodwin Procter LLP and McCarthy Tétrault LLP as legal advisors to Slate. Evercore is serving as financial advisor and Ropes & Gray LLP as legal advisor to Annaly.
About Slate Asset Management
Slate Asset Management is a leading real estate focused alternative investment platform. Slate is a value-oriented manager and a significant sponsor of all of its private and publicly traded investment vehicles, which are tailored to the unique goals and objectives of its investors. The firm’s careful and selective investment approach creates long-term value with an emphasis on capital preservation and outsized returns. Slate is supported by exceptional people, flexible capital and a demonstrated ability to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.
Annaly is a leading diversified capital manager that invests in and finances residential and commercial assets. Annaly’s principal business objective is to generate net income for distribution to its stockholders and to optimize its returns through prudent management of its diversified investment strategies. Annaly is internally managed and has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. Additional information on the company can be found at www.annaly.com.