Slate Asset Management Expands European Essential Real Estate Platform With Grocery Portfolio Acquisition in Portugal

Barchart · 10/15 02:05

Slate Asset Management (“Slate” or the “Firm”), a global alternative investment platform targeting real assets, today announced that it has expanded its European essential real estate strategy into a new market with the acquisition of a portfolio of 12 grocery properties in Portugal (the “Portfolio”) valued at approximately €150 million from seller LCN Capital Partners (“LCN”). This acquisition marks Slate’s first investment in Portugal and further increases the Firm’s exposure to high-quality essential real estate assets in Europe.

The Portfolio is comprised of 12 grocery real estate properties, which are entirely let to Continente, Portugal’s largest grocery retailer, under long-term lease agreements supporting stable and attractive income streams. The properties are high-quality, strong performing stores that are well-located in large urban areas and geographically diversified across Portugal, largely concentrated in the Metropolitan Area of Lisbon, Porto, and Faro. All stores offer convenient transportation links and a range of electric vehicle charging facilities.

“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,” said Brady Welch, Co-founding Partner of Slate. “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 maximize 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, added: “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 recognized 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.”

“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,” said Edward V. LaPuma, Co-Founder and Managing Partner at LCN. “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, Vice President at LCN, added: “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.”

Slate’s European essential real estate strategy is focused on acquiring, owning, and operating cash yielding, essential real estate assets, such as grocery; pharma or other healthcare services assets; and affiliated warehouses and logistics assets. The Firm has been an active investor in the European real estate market since 2016. To date, Slate has transacted on approximately 1,000 commercial properties across 7 countries in the region. Today, Slate operates a portfolio of approximately 500 essential real estate assets across Europe that are owned by Slate and its capital partners.

Uría Menéndez, Engexpor, RPE, and KPMG advised Slate on this transaction. Cuatrecasas advised LCN on this transaction.

About Slate Asset Management

Slate Asset Management is a global alternative investment platform. We focus on fundamentals with the objective of creating long-term value for our investors and partners. Slate’s platform focuses on four areas of real assets, including real estate equity, real estate credit, real estate securities, and infrastructure. We are supported by exceptional people and flexible capital, which enable us to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more, and follow Slate Asset Management on LinkedIn, X (Twitter), and Instagram.

About LCN Capital Partners

Founded in 2011 by Edward V. LaPuma and Bryan York Colwell, LCN now manages over $7 billion in assets across several funds denominated in US Dollars, Euros, and Pound Sterling. Headquartered in New York City, LCN also has offices in Amsterdam, Cologne, London, Luxembourg, and Palm Beach.

LCN Capital Partners is a recognized leader in the Sale-Leaseback and Build-to-Suit markets. LCN looks to deliver a long-term solution for its tenant-clients by providing a non-bank capital resource, efficient monetization of on-balance sheet real estate, continued operational control of key assets, enhanced financial metrics, and potential tax benefits. In addition, LCN's investing partners benefit from the long-term and inflation-mitigated distributions. For more information, please visit: www.lcnpartners.com.