Slate Asset Management has announced an agreement to acquire the Morrisons Regional Distribution Centre in Bridgwater, England from fellow Canadian firm Aviva Investors for an undisclosed price.

The 780,000-square-foot facility is fully leased by Morrisons, one of the U.K.’s leading grocers, on an index-linked, triple-net lease. Strategically located on a key motorway axis, the centre provides vital supply chain support for nearly 20% of Morrisons’ supermarket locations in South England and South Wales, operating 24 hours per day, seven days a week, to meet consumer demand.

The facility boasts robust environmental sustainability features, including over 4,000 rooftop solar panels, rainwater harvesting systems, and on-site recycling. Morrisons continues to invest in upgrades and new technologies to further enhance the Centre’s sustainability and resilience.

“This property meets all the key criteria we look for in income-generating essential real estate investments,” said Brady Welch, co-founding partner at Toronto-based Slate. “It’s a modern, sustainably built facility underpinned by a leading national grocer. The property’s strategic location makes it uniquely well-positioned to efficiently distribute everyday goods to millions of consumers.

“It’s an exciting acquisition for us in the U.K., where we continue to actively evaluate opportunities across the essential real estate sector.”

Essential real estate refers to properties that meet non-discretionary needs of day-to-day life, including grocery, residential, industrial and logistics, and healthcare.

The acquisition comes as Slate is shifting away from its focus on office assets and focus on essential real estate.

As part of the effort, the company has begun the process to relinquish its role as Slate Office REIT’s external manager. Brady Welch and his brother Blair, also a company co-founder, have resigned from the REIT’s board following a battle with other board members, particularly George Armoyan, who now chairs it.

Since entering the European real estate market in 2016, Slate Asset Management has acquired approximately 1,000 commercial properties across seven countries. The firm’s European strategy focuses on essential real estate investments, including grocery, pharmacy, food logistics, and other assets that cater to daily consumer needs.

Advisors for the transaction included Cushman & Wakefield, Gowling WLG, and KPMG. The deal is expected to close in December 2024, subject to customary closing conditions.

Toronto-based Aviva is a global investment management company.

Photo: Slate Asset Management