Brixmor Property Group Inc. and Everview Partners have entered into definitive agreements to acquire 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, and a newly formed institutional joint venture between Brixmor and affiliates of Everview Partners will acquire the remaining 92 assets for $1.71 billion.
“This immediately accretive transaction is directly aligned with our growth strategy, adding 23 grocery-anchored centers in markets we know well, with long-standing grocer relationships we plan to grow, while further leveraging our operating platform in a capital efficient joint venture with Everview,” commented Brian T. Finnegan, Brixmor’s chief executive officer and president. “We are pleased to partner with Everview and look forward to leveraging our combined strengths to capitalize on the significant opportunities across this portfolio.”
Additionally, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will act as a strategic investor alongside Everview in the transaction. 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 transaction reflects our conviction in grocery-anchored, open-air retail, which we expect will continue to benefit from limited new supply and durable tenant demand,” said Billy Rahm, Everview’s founder and chief executive officer. “We believe the portfolio is a high-quality collection of centers in attractive markets with meaningful embedded upside. We are excited to be acquiring it alongside Brixmor, whose strong operating platform, retailer relationships, and redevelopment capability make them a great partner.”
Under the agreement, Brixmor will acquire 23 grocery-anchored shopping centers (representing a 100% interest in 22 centers and a 50% interest in one center) aggregating approximately three million square feet and located entirely within Brixmor’s existing operating footprint, predominantly across Florida, Georgia, and the Carolinas.
Brixmor will hold a 20% common equity interest and Everview will hold an 80% common equity interest in 92 shopping centers aggregating approximately 12 million square feet. Brixmor will also serve as the asset manager, property manager and leasing representative for this. Brixmor will also make a preferred equity investment of approximately $174 million in the joint venture, which will generate a 9% dividend.
The transaction, which is not subject to any financing conditions, has been approved by Brixmor’s board of directors and Slate’s board of trustees and is expected to close in the first quarter of 2027, subject to the receipt of approval of Slate unitholders and satisfaction of other customary closing conditions.
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 joint venture 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 for the transaction for both portfolios. 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 joint venture financing.
