Slate Office REIT 9 00 Convertible Unsecured Subordinated Debentures Exp 28 Feb 2026 T.SOT.DB

BMO Capital Markets comment on Goldman Sachs deal

[StormyD]

Proceeds to be used to increase general partnership investments in current and future investment vehicles. In addition to acting as external manager, as at June 30, 2019, SLAM owned a 9.5% interest (~C$41M) in Slate Office REIT (SOT.UN-TSX | $5.86 | Market Perform) and a 7.7% interest (~C$44M) in Slate Retail REIT (SRT.UTSX | US$9.73 | Market Perform). We understand that GSAM has underwritten all of SLAM's investments, and through its investment in the manager, will be invested right alongside SLAM, including in its positions in Slate Office REIT and Slate Retail REIT.

Management stated that the day-to-day operations and management of SLAM will remain unchanged. While we do not expect any immediate impact to Slate Office REIT and Slate Retail REIT, an investment in SLAM by a sophisticated global institutional investor is an encouraging endorsement. In connection with the transaction, SLAM founders Blair and Brady Welch have made a long-term commitment to the business (at least 10 years), ensuring continued stability of the platform.

We believe the relationship that Slate Office REIT and Slate Retail REIT have with SLAM is key to future growth, as the asset manager continues to leverage relationships in the industry to source deals and drive external growth.

SLAM is a privately owned asset manager focused on international real estate investments. The company has AUM of ~$6.2 billion and operates three segments: 1) four private equity funds, 2) institutional separate accounts, and 3) public equity, which is composed of Slate Office REIT and Slate Retail REIT.