ADIA Subsidiary Backs $2.34B Takeover of Slate Grocery REIT

Canada's Slate Grocery REIT is being taken private in a $2.34 billion transaction that will move 115 grocery-anchored shopping centers across the United States out of public ownership. A wholly owned subsidiary of the Abu Dhabi Investment Authority is participating as a strategic investor in the larger of the two portfolios being carved up.

How the portfolios split

Brixmor Property Group, a New York Stock Exchange-listed owner of open-air centers, is buying 23 of the properties outright for $636 million. Those centers cover about three million square feet and sit inside Brixmor's existing footprint in Florida, Georgia and the Carolinas. The portfolio is roughly 96% leased, with Publix, Harris Teeter and Kroger among the grocery anchors.

The remaining 92 centers, about 12 million square feet, go to a newly formed joint venture between Brixmor and affiliates of Everview Partners for $1.71 billion. The ADIA subsidiary invests alongside Everview in that venture. The size of ADIA's commitment was not disclosed.

Ownership and roles inside the venture

Everview holds 80% of the joint venture's common equity, with Brixmor taking the other 20%. Brixmor will act as asset manager, property manager and leasing representative for the venture, and is putting in about $174 million of preferred equity carrying a 9% dividend.

Everview founder and CEO Billy Rahm said the deal reflects the firm's conviction in grocery-anchored, open-air retail, which he expects to keep benefiting from limited new supply and durable tenant demand. He called the portfolio a high-quality set of centers in attractive markets with meaningful embedded upside.

Rent gap and redevelopment pipeline

Rents in place across the two portfolios average 32% below those on Brixmor's current books. Brixmor has identified roughly $100 million of redevelopment and outparcel opportunities within the 23 centers it is acquiring, including several possible Publix redevelopments.

The company expects the purchase to add to funds from operations per share right away, and says the portfolios should deliver the 4% long-term growth in net operating income it targets. CEO and president Brian Finnegan described the transaction as immediately accretive and aligned with the company's growth strategy, pointing to the 23 centers in markets Brixmor knows and the grocer relationships it intends to expand.

Approvals and financing

Neither board has attached financing conditions to the deal. Brixmor's board of directors and Slate's board of trustees have both approved it. Closing is expected in the first quarter of 2027 and depends on approval from Slate's unitholders.

Royal Bank of Canada has given Brixmor a bridge commitment to cover its capital contributions on both portfolios. Wells Fargo and RBC have provided a debt commitment to the joint venture.

The buyers

Brixmor owns and operates 346 open-air shopping centers totaling about 63 million square feet. Everview, founded in 2024, invests across the capital structure in real asset companies and properties. ADIA, established in 1976, invests on behalf of Abu Dhabi's government and pursues long-term value creation.

Slate Grocery REIT owns and operates US grocery-anchored real estate.