Slate Raises €250M For 3rd Europe-Focused Fund

Slate Asset Management, a Toronto- and London-based real estate-focused investment firm, reports that it has closed an oversubscribed fund focused on investments in the European grocery store real estate markets.

The Slate European Real Estate Fund III closed at its hard cap of €250 million, which is about $270 million, above its target of €200 million, the asset management firm said. Brady Welch, one of the firm’s founding partners, said in a statement that he appreciated the show of faith from investors.

“We have been investing in last-mile logistics for some time and are proud to launch our third fund in the European grocery real estate space since 2016, a feat that underscores our commitment to the sector and validates the importance of last-mile solutions in the grocery real estate market,” he said.

Slate said it has completed 250 grocery property acquisitions since December 2016. The firm’s previous European funds have focused on Germany, and have made investments in more than 100 real estate assets combined. Tenants include Aldi and Lidl, according to the firm’s website.

IPE Real Assets reported that about 56% of Slate’s latest European fund came from European investors, with another 14% from Asia.

Despite the economic havoc wrought by the coronavirus pandemic, grocery stores have stayed open even as restaurants and other retailers have often been forced to close. In the U.S., sales at brick-and-mortar stores have been up slightly compared to last year, and spending for online grocery delivery has skyrocketed.

Customers have flocked to large retailers like Costco, Target and Walmart. Grocery-anchored retail has also performed well, as GlobeSt.com has reported.

Grocery demand has been robust on the other side of the Atlantic, too. Tesco, one of Europe’s largest food retailers, reported a spate of panic buying in the U.K., and food-delivery service Uber Eats has said its European grocery deliveries rose 59% in March compared to February.