Slate Retail REIT to close $65M bought deal and $2.5M private placement

pcNewsWireSlate Retail REIT (TSX: SRT.U; SRT.UN) has engaged CIBC Capital Markets, BMO Capital Markets and GMP Securities for a bought deal of 4,410,000 class U units at CDN $14.75 per unit or US $11.00 per unit for gross proceeds of approximately CDN $65 million.

Slate Asset Management L.P., the REIT’s manager, will acquire 170,000 Units at the Offering Price for gross proceeds of approximately CDN $2.5 million.

News Release

Slate Retail REIT Announces C$65 Million Bought Deal Equity Offering and C$2.5 Million Private Placement

TORONTO, ON – Slate Retail REIT (TSX: SRT.U) (TSX: SRT.UN) (the “REIT”), an owner and operator of U.S. grocery-anchored real estate, announced today that it has entered into an agreement to sell, on a bought deal basis, 4,410,000 class U units of the REIT (“Units”) to a syndicate of underwriters (the “Underwriters”) led by CIBC Capital Markets, BMO Capital Markets and GMP Securities. The Units will be offered at a price of C$14.75 per Unit or US$11.00 per Unit (the “Offering Price”) for gross proceeds of approximately C$65 million (the “Public Offering”).

The REIT has also granted the Underwriters an over-allotment option to purchase up to an additional 15% of the Public Offering on the same terms and conditions, exercisable at any time, in whole or in part, up to 30 days after the closing of the Public Offering (the “Over-Allotment Option”).

Concurrent with the Public Offering, Slate Asset Management L.P. (“Slate”), the REIT’s manager, will acquire 170,000 Units at the Offering Price for gross proceeds of approximately C$2.5 million (the “Private Placement”), representing 3.7% of the aggregate gross proceeds of the Public Offering and Private Placement. Following the completion of the Public Offering and Private Placement, Slate’s interest in the REIT will be 6.3% on a fully diluted basis.

Proceeds of the Public Offering and Private Placement will initially be used to reduce outstanding indebtedness under the REIT’s credit facility (which may be subsequently redrawn and applied as needed to fund future acquisitions and for general trust purposes).

Since the beginning of 2017, the REIT has completed or announced the acquisition of US$106.9 million of property acquisitions. The REIT continues to have a robust pipeline of grocery-anchored property acquisition opportunities that it is actively evaluating.

“The opportunity to make accretive acquisitions of grocery-anchored retail assets continues to be very deep,” said Greg Stevenson, the REIT’s Chief Executive Officer. “We are excited about continuing to capitalize on these opportunities in order to deliver growth for our unitholders.”

The Public Offering is being made under the REIT’s base shelf prospectus dated March 17, 2017. The REIT intends to file a prospectus supplement relating to the issuance of the Units by May 25, 2017 with the securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada. The Public Offering and the Private Placement are subject to the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange. Closing of the Public Offering and Private Placement are expected to take place on or about May 31, 2017.

The Units have not been and will not be registered under the United States Securities Act of 1933 and accordingly will not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of, a U.S. person, except pursuant to applicable exemptions from the registration requirements. This press release does not constitute an offer to sell or a solicitation of an offer to buy any Units in the United States or to, or for the account or for the benefit of, U.S. persons.

Slate Asset Management L.P. (“Slate”) is the REIT’s manager.

About Slate Retail REIT (TSX:SRT.U)(TSX:SRT.UN)

Slate Retail REIT is a real estate investment trust focused on U.S. grocery-anchored real estate. The REIT owns and operates over US$1 billion of assets located across the top 50 U.S. metro markets that are visited regularly by consumers for their everyday needs. The REIT’s conservative payout ratio, together with its diversified portfolio and quality tenant covenants, provides a strong basis to continue to grow unitholder distributions and the flexibility to capitalize on opportunities that drive value appreciation. Visit to learn more about the REIT.

About Slate Asset Management L.P.

Slate Asset Management L.P. is a leading real estate investment platform with over C$4.0 billion in assets under management. Slate is a value-oriented manager and a significant sponsor of all of its private and publicly-traded investment vehicles, which are tailored to the unique goals and objectives of its investors. The firm’s careful and selective investment approach creates long-term value with an emphasis on capital preservation and outsized returns. Slate is supported by exceptional people, flexible capital and a proven ability to originate and execute on a wide range of compelling investment opportunities. Visit to learn more.

For Further Information
Investor Relations
Slate Retail REIT
+1 416 644 4264

SOURCE: Slate Retail REIT