TORONTO, Sept. 22, 2021 (GLOBE NEWSWIRE) -- Slate Grocery REIT (TSX: SGR.U) (TSX: SGR.UN) (the “REIT”), an owner and operator of U.S. grocery-anchored real estate, announced today the closing of its previously announced acquisition (the “Acquisition”) of a US$390 million grocery-anchored portfolio (the “Portfolio”). The Portfolio comprises 25 properties and 3.1 million square feet in major metro markets across the United States.
The Acquisition significantly increases the size and scale of the REIT’s portfolio to an aggregate 13.0 million square feet and US$1.8 billion of critical real estate and is expected to be immediately accretive to the REIT’s funds from operations per unit and adjusted funds from operations per unit.
“We are pleased to close this compelling transaction to acquire US$390 million of quality grocery-anchored assets that generates immediate accretion for unitholders,” said David Dunn, Chief Executive Officer of Slate Grocery REIT. “We have increased our exposure to America’s largest metropolitan markets at an attractive cost basis and deepened our relationships with leading omnichannel grocers whose neighborhood stores will continue to serve as critical food distribution points for both in-store and online purchases.”
The Acquisition purchase price was partially funded by the proceeds of the sale of 11,420,000 subscription receipts of the REIT (the "Subscription Receipts") at a price of C$11.65 per Subscription Receipt for gross proceeds of approximately C$133,043,000, which closed on March 31, 2021.
Subscription Receipts
As a result of the completion of the Acquisition, each of the 11,420,000 outstanding Subscription Receipts will automatically be exchanged for one class U trust unit of the REIT (“Class U Units”) and a cash distribution-equivalent payment of US$0.072 per Subscription Receipt will be made in respect of each of the record dates that have occurred since the date of the closing of the Subscription Receipt offering, less any applicable withholding taxes (being equal to the aggregate amount of distributions paid by the REIT per Class U Unit in respect of such record dates). Trading in the Subscription Receipts on the Toronto Stock Exchange has been halted, and the Subscription Receipts are expected to be delisted immediately and the Class U Units issued in exchange for the Subscription Receipts will immediately commence trading on the Toronto Stock Exchange.
The REIT further expects that holders of Subscription Receipts will receive in the upcoming days the Class U Units and the distribution equivalent payment to which they are entitled.
Visit slategroceryreit.com to learn more about the REIT.
https://www.globenewswire.com/news-release/2021/09/22/2301695/0/en/Slate-Grocery-REIT-Completes-US-390-Million-Grocery-Anchored-Portfolio-Acquisition-and-Amendment-of-Management-Agreement.html