Slate Asset Management has made its first Portuguese real estate transaction with the acquisition of a €150m grocery portfolio.
Slate has acquired the portfolio of 12 grocery properties from LCN Capital Partners in a deal that increases the global fund manager’s exposure to European “essential real estate assets”.
The assets, leased to grocery retailer Continente, are mainly located in the Metropolitan Area of Lisbon, Porto and Faro, Slate said.
Brady Welch, co-founding partner of Slate, said: “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.”
Slate’s European essential real estate strategy centres on acquiring, owning and operating income-generating assets, including grocery stores, pharmacies, other healthcare facilities, and related warehouses and logistics properties. The firm has been actively investing in European real estate since 2016.
Welch added: “We have spent over a decade acquiring, owning and operating grocery real estate in markets across Europe, with a strong team that expertly understands the grocery landscape and works collaboratively with tenants to maximise the value of our real estate.
“We look forward to bringing our expertise to Portugal and unlocking new growth opportunities in this market on behalf of our investors.”
Sven Vollenbruch, managing director at Slate, said: “Portugal’s well-developed grocery market anchored by strong tenants and high-quality covenants has been a key area of interest for our team in Europe.
“After years of underwriting, we recognised this Portfolio to be an ideal fit for our European essential real estate strategy and a strong foothold from which Slate can continue to grow in Iberia.”
Edward V LaPuma, co-founder and managing partner at LCN, said: “This portfolio represented our first acquisition in the Portuguese market, making LCN one of the first international investors to execute a large-scale sale-leaseback transaction in Portugal and the Iberian Peninsula.
“LCN has formed a fruitful partnership with SonaeMC, the owner of Continente, a reliable and trustworthy partner. The value add has led LCN and SonaeMC to work together on multiple transactions and strengthened Sonae’s position in the grocery market in Portugal.”
Carlos Viera Neto, VP at LCN, said: “The disposition of this portfolio, after almost a decade of ownership, is part of the fund’s wind down period.
“We will continue to actively source new investment opportunities in Portugal and Europe to further expand our footprint across different industries and sectors of the real estate market through our sale-leaseback and built-to-suit strategies.”
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