Annaly to sell US portfolio to private equity firm in $ 2.33 billion deal
Annaly Capital management (ONLY) – Get the Annaly Capital Management, Inc. report has agreed to sell its commercial real estate business to Toronto-based private equity firm Slate Asset Management, the firm and the company said.
The deal is valued at $ 2.33 billion and includes interest-bearing home loans, debt and real estate equity positions, Slate said in a statement.
Annaly, New York, invests and finances residential and commercial real estate.
The real estate portfolio includes $ 800 million in equity and nearly $ 1.53 billion in financing, according to media reports.
As part of the deal, a $ 400 million portfolio of real estate assets anchored in grocery stores in major U.S. markets will be purchased by Slate Grocery REIT, SRRTF’s U.S. business Slate, the PE company said.
Slate Grocery REIT will acquire 25 properties with an area of 3.1 million square feet in New York, Texas, Georgia, Ohio, Florida, Indiana and California, according to media reports.
The main grocery chains associated with these assets include Tops, Market 32 (Price Chopper) and Tom Thumb’s.
The deal is expected to be concluded by mid-year, subject to conditions, including regulatory clearances.
“This transaction provides compelling execution for our shareholders” and provides additional capacity to expand operations into the residential mortgage finance market, Annaly Managing Director and Chief Investment Officer David Finkelstein said in a statement.
A number of Annaly employees will join Slate. These include Timothy Gallagher, head of commercial real estate for Annaly, and Michael Quinn, who heads commercial investments.
At the last check, shares of Annaly Capital Management were 0.3% higher at $ 8.89.