Slate Asset Management Acquires Annaly Capital CRE Business for $2.3B

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Slate Asset Management has acquired Annaly Capital Management’s commercial real estate business (ACREG) in a $2.3 billion deal, the investment firm announced late Thursday.

The acquisition includes a portfolio of performing real estate loans, debt securities and real estate equity positions. Members of the ACREG team will join Slate upon the deal’s closing.

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The transaction also includes Slate Grocery REIT, the platform’s grocery anchored-business, purchasing $400 million of Annaly’s grocery-anchored real estate assets located in major U.S. markets.

“We believe this transaction is another example of Slate’s ability to find value for our partners and investors at an opportune time in the market cycle,” Blair Welch, co-founding partner of Slate Asset Management, said in a statement. “The acquisition of this platform further expands Slate’s core capabilities across the real estate capital stack.”

The transaction is subject to certain closing conditions and regulatory approvals. The deal is expected to close in the middle of this year.

BMO Capital Markets is serving as financial advisor for the acquisition.

“Combined with our investment platform, sophistication, institutional relationships and operational expertise, we are uniquely positioned to provide creative debt capital solutions in the current market environment,” Welch said. “Additionally, we are very excited to have the ACREG team members join us at Slate.”