Slate to buy Annaly’s commercial real estate business for $2.3bn | News
Slate Asset Management to acquire Annaly Capital Management’s commercial real estate business (ACREG) for $ 2.33 billion.
According to the $ 6.5 billion real estate-focused alternative investment platform, the ACREG acquisition includes a portfolio of real estate loans, debt and real estate equity positions.
Slate said the acquisition also includes a $ 0.4 billion portfolio of real estate properties located in key U.S. markets that will be purchased by Slate Grocery REIT, Slate’s wholly U.S. grocery store.
Several members of the ACREG team, including the head of commercial real estate, Timothy Gallagher, and Michael Quinn, the head of commercial investments, will move to Slate upon completion of the transaction, which is expected in mid-2021.
Blair Welch, co-founder of Slate Asset Management, said the acquisition of the platform further expands Slate’s core competencies across the real estate capital stack.
“In combination with our investment platform, our sophistication, our institutional relationships and our operational expertise, we are uniquely positioned to offer creative debt capital solutions in the current market environment. We are also very pleased that the members of the ACREG team are coming to Slate. “
David Finkelstein, CEO and CIO of Annaly Capital Management, said, “Commercial real estate has been an important part of Annaly’s differentiated investment model since 2013.
“This transaction provides our shareholders with compelling execution and provides additional capacity to further develop our leadership and operational capabilities in all aspects of the residential mortgage finance market. This has been the cornerstone of Annaly’s strategy since our inception.”
Annaly said it intends to use the proceeds from the sale to repay its financing facilities related to the commercial real estate assets sold and to purchase target assets in accordance with its capital allocation policy, which may include investing in agency assets as well as residential and corporate loan assets.
Annaly expects to maintain limited exposure to the commercial real estate sector through opportunistic and efficient strategies within the securities portfolio.
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