Slate Asset Management has made a significant move in the European real estate market by acquiring a portfolio of 12 grocery properties in Portugal, valued at approximately €150 million. This acquisition marks Slate’s first investment in Portugal and enhances its strategy of focusing on essential real estate assets across Europe.
Key Takeaways
- Slate Asset Management acquires 12 grocery properties in Portugal for €150 million.
- The properties are fully leased to Continente, Portugal’s largest grocery retailer.
- This acquisition represents Slate’s first investment in the Portuguese market.
- The portfolio is strategically located in major urban areas, including Lisbon, Porto, and Faro.
Strategic Expansion Into Portugal
Slate Asset Management, a global alternative investment platform, has announced its expansion into the Portuguese market with the acquisition of a grocery portfolio. This strategic move is part of Slate’s broader European essential real estate strategy, which focuses on acquiring high-quality, cash-yielding properties.
The portfolio consists of 12 grocery properties, all leased to Continente, ensuring stable income streams through long-term agreements. These properties are well-positioned in urban centers, providing convenient access and transportation links for customers.
Insights From Slate Leadership
Brady Welch, Co-founding Partner of Slate, expressed enthusiasm about this acquisition, stating, "This acquisition marks an exciting new chapter of growth for our European platform, as we expand into a new market with a portfolio underpinned by a leading regional grocer." He emphasized the firm’s decade-long experience in grocery real estate across Europe and the potential for growth in Portugal.
Sven Vollenbruch, Managing Director at Slate, highlighted the importance of Portugal’s grocery market, noting that it has been a key area of interest for the firm. He stated, "After years of underwriting, we recognized this Portfolio to be an ideal fit for our European essential real estate strategy."
The Role of LCN Capital Partners
The seller of the portfolio, LCN Capital Partners, has been a significant player in the real estate market, particularly in Sale-Leaseback transactions. Edward V. LaPuma, Co-Founder and Managing Partner at LCN, remarked on the successful partnership with SonaeMC, the owner of Continente, which has facilitated multiple transactions in the grocery sector.
Carlos Viera Neto, Vice President at LCN, mentioned that the sale of this portfolio is part of the fund’s wind-down period, but the firm remains committed to sourcing new investment opportunities in Portugal and Europe.
Future Prospects
Slate’s European essential real estate strategy aims to acquire and operate essential assets, including grocery stores, healthcare facilities, and logistics properties. Since entering the European market in 2016, Slate has transacted on approximately 1,000 commercial properties across seven countries, currently managing around 500 essential real estate assets.
This acquisition not only strengthens Slate’s position in the European market but also sets the stage for future growth opportunities in Portugal and beyond. With a focus on high-quality tenants and strategic locations, Slate is poised to capitalize on the evolving landscape of essential real estate in Europe.
