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Brixmor Property Group and Everview Partners announced definitive agreements to acquire Slate Grocery REIT in a transaction valued at $2.34 billion according to a joint statement released by the companies. The deal follows Slate Grocery REIT’s strategic review process that began in May after the Canadian-listed entity owning U.S. retail centers initiated the evaluation of options. Brixmor will gain immediate earnings accretion from the acquisition while leveraging its operating platform across the added assets the statement indicated.
Under the structure Brixmor will directly purchase 23 grocery-anchored shopping centers totaling approximately three million square feet for $636 million the companies reported. A newly formed joint venture between Brixmor and affiliates of Everview Partners will take the remaining 92 centers for $1.71 billion according to the announcement. The combined portfolio spans roughly 15 million square feet across 115 properties in 23 states with nearly half located in the Southeast the filing detailed.
A wholly owned subsidiary of the Abu Dhabi Investment Authority will participate as a strategic investor alongside Everview in the joint venture portion of the transaction Brixmor stated. Brixmor will hold a 20 percent common equity interest in the venture plus make a preferred equity investment of approximately $174 million that yields a 9 percent dividend the company added. Everview will control the majority stake in that entity according to the terms outlined.
The 23-asset portfolio acquired outright by Brixmor is 96 percent leased and lies entirely within the company’s existing operating footprint predominantly in Florida Georgia and the Carolinas the announcement specified. Anchor tenants include Publix Harris Teeter Kroger and Walmart Neighborhood Market across those sites. Brixmor identified roughly $100 million in redevelopment and outparcel opportunities within the acquired assets including potential Publix redevelopment projects the company noted.
Slate Grocery REIT suspended its distributions days before the sale announcement which contributed to a decline in its unit price according to a report by The Globe and Mail. The $13 per unit cash price represents a 20 percent premium to the closing price immediately prior to the distribution cut the publication reported. Slate chief executive officer Blair Welch said “This outcome validates what we have long believed: grocery-anchored essential real estate is a high-quality in-demand asset class and active in-house management creates measurable value for investors.”
Grocery-anchored open-air retail centers have demonstrated resilience compared with enclosed malls during recent market shifts The Real Deal noted in its coverage of the transaction. The acquired assets include significant exposure to Kroger and Walmart which together occupy almost one-fifth of the portfolio according to company data. The deal is expected to close in the first quarter of 2027 subject to customary approvals the parties stated.
The Abu Dhabi Investment Authority adjusted its real estate allocation range downward to 2-7 percent from 5-10 percent in its 2025 annual review while maintaining absolute exposure levels as other asset classes expanded EnterpriseAM reported earlier this month. The sovereign fund has continued selective real estate commitments including participation in continuation vehicles and secondaries the publication added. This transaction marks the latest instance of ADIA backing high-quality U.S. essential retail assets through partnership structures.
