Slate Grocery REIT announced Friday that it has launched a strategic review process that could result in the sale of the company after receiving an unsolicited proposal from affiliates of Slate Asset Management, its external manager.

The REIT said its board of trustees has established a special committee of independent trustees to evaluate a broad range of strategic alternatives, including maintaining the status quo or pursuing a full-company sale. The committee has initiated a formal process to solicit proposals from third parties.

“The committee recognizes that the value of the underlying portfolio may not be fully reflected in the public markets, and as such, we are evaluating various alternatives ranging from initiatives under the status quo, to a whole company sale,” said Marc Rouleau, chair of the special committee.

The special committee has retained Evercore as exclusive financial advisor, while Fasken Martineau DuMoulin LLP and Sidley Austin LLP are serving as independent legal counsel. Raider Hill Advisors, L.L.C. has also been engaged as exclusive special real estate advisor.

The REIT said no action is required from unitholders at this time and cautioned there is no assurance the review process will result in a transaction or other strategic outcome.

The special committee said it does not intend to provide further updates unless additional disclosure is deemed appropriate or required under securities laws.

Toronto-based Slate Grocery REIT owns and operates 115 grocery critical-infrastructure properties valued at $2.4 billion in 23 states. Major tenants include national grocery-store chains Kroger, Walmart and Publix, according to the trust’s CEO Blair Welch’s latest letter to unitholders. Blair Welch and his brother Brady co-founded the REIT and also co-founded and Slate Asset Management.

Pictured: Kroger store in the U.S. Kroger is a Slate Grocery REIT tenant.

Photo: Kroger

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