This transaction further increases the firm’s exposure to high-quality essential real estate assets in Europe and deepens Slate’s presence in Norway following the firm’s inaugural NOK 1 billion essential real estate portfolio acquisition in the region in December 2021.
The assets are well-located in close proximity to Norway's capital, Oslo. Approximately 95% of the portfolio’s income is secured by essential goods and service providers, with over 85% of the portfolio’s base rent generated by NorgesGruppen, a market-leading, Class A grocery tenant. The portfolio is well-positioned to provide long-term secured cash flows, as well as protection against inflation with CPI linked leases.
Slate has identified a number of optimization and modernization opportunities in cooperation with the portfolio’s tenants to realize additional upside and increase turnover potential at these asset locations, including investing in more sustainable infrastructure, such as EV charging stations.
“Essential real estate continues to demonstrate its resiliency and ability to perform in all market conditions, and we are pleased to be increasing our exposure to this asset class through these acquisitions while also scaling our presence in one of Europe’s strongest economies,” said Brady Welch, Founding Partner at Slate Asset Management. “These are high-quality, well-located and well-performing assets underpinned by one of the strongest and fastest growing essential goods providers in Norway. We look forward to working hand-in-hand with our tenant partners to make these properties even more modern, sustainable and resilient for years to come.”
Slate has been actively acquiring essential real estate assets in Europe since 2016. The firm’s European Essential Real Estate Strategy is focused on stabilized, cash yielding assets critical to the supply chain with high credit quality tenants, such as grocery and other essential consumer goods providers, healthcare assets, and affiliated warehouses and logistics centers.
Slate was advised by Schjødt, CBRE, BER as well as KPMG Norway on this transaction, which is expected to close in March 2022.