Real estate business

Slate to Buy Annaly’s Commercial Real Estate Business for $ 2.3 Billion | New

Slate Asset Management acquires the commercial real estate business of Annaly Capital Management (ACREG) for $ 2.33 billion (€ 2 billion).

The $ 6.5 billion real estate-focused alternative investment platform said the ACREG acquisition includes a portfolio of performing real estate loans, debt securities and real estate equity positions.

Slate said the acquisition also includes a $ 0.4 billion portfolio of grocery-anchored real estate assets located in major U.S. markets that will be purchased by Slate Grocery REIT, Slate’s pure-play business anchored in groceries in the United States.

Some members of the ACREG team, including Head of Commercial Real Estate Timothy Gallagher and Michael Quinn, Head of Commercial Investments, will join Slate as soon as the deal closes, which is expected by mid 2021.

Blair Welch, co-founding partner of Slate Asset Management, said the acquisition of the platform further expands Slate’s core capabilities across the real estate capital stack.

“Combined with our investment platform, sophistication, institutional relationships and operational expertise, we are uniquely positioned to provide creative debt capital solutions in today’s market environment. In addition, we are very pleased that the members of the ACREG team are joining us at Slate. “

David Finkelstein, CEO and CIO of Annaly Capital Management, said: “The commercial real estate industry has been an important part of Annaly’s differentiated investment model since 2013.

“This transaction provides compelling execution to our shareholders and will provide additional capacity to further extend our leadership and operational capabilities in all aspects of the residential mortgage finance market, which has been a cornerstone of Annaly’s strategy since our founding. . “

Annaly has stated that she intends to use the proceeds of the sale to repay its financing facilities related to the commercial real estate assets sold and to purchase targeted assets in accordance with its capital allocation policy, which may include investments in Agency assets as well as in residential and business buildings. credit assets.

Annaly plans to maintain limited exposure to the commercial real estate sector through opportunistic and effective strategies within the securities portfolio.

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