Slate Grocery REIT, a real estate investment trust focused on grocery-anchored retail properties, is considering a potential sale after receiving an unsolicited takeover proposal, according to sources familiar with the matter.
Unsolicited Bid Triggers Review
The Toronto-based REIT has engaged financial advisors to evaluate the unsolicited offer and explore strategic alternatives, which could include a sale of the company. The identity of the bidder and the terms of the proposal have not been disclosed.
Slate Grocery REIT owns a portfolio of 129 properties across Canada, primarily anchored by major grocery chains such as Loblaws, Sobeys, and Metro. The properties are located in key markets including Ontario, Quebec, British Columbia, and Alberta.
Market Reaction
Shares of Slate Grocery REIT rose sharply on the news, trading up more than 8% on the Toronto Stock Exchange. The REIT has a market capitalization of approximately $1.2 billion.
The unsolicited bid comes at a time when the grocery-anchored retail sector has been relatively resilient, benefiting from steady demand for essential goods. However, rising interest rates and inflationary pressures have weighed on property valuations and investor sentiment.
Strategic Review
The REIT's board of trustees has formed a special committee to review the unsolicited proposal and other strategic options. The committee has retained BMO Capital Markets as its financial advisor and Blake, Cassels & Graydon as legal counsel.
There is no assurance that the review will result in a sale or any other transaction. Slate Grocery REIT has not set a timeline for the process and does not intend to comment further until the board has approved a specific course of action.
About Slate Grocery REIT
Slate Grocery REIT is an unincorporated, open-ended real estate investment trust focused on acquiring and owning grocery-anchored retail properties in Canada. The REIT's portfolio comprises approximately 12.3 million square feet of gross leasable area. The properties are located in densely populated urban and suburban neighborhoods with strong demographics.
The REIT is externally managed by Slate Asset Management, a global real estate investment platform with over $10 billion in assets under management.
