Slate Asset REIT has announced plans to sell 40% of its gross leasable area.
“Management and the board have determined that the best course of action for unitholders is to execute a portfolio realignment plan that will improve the REIT’s liquidity, strengthen its balance sheet through reduced debt, and improve portfolio composition,” said Slate in a news release.
The Toronto-based REIT operates globally.
Slate said it has identified non-core assets in certain Canadian markets for strategic disposition and intends to use sale proceeds for debt repayment and general liquidity. In its third quarter report, Slate said it has about $1.2 billion in debt and $1.8 billion in assets.
“The continuing portfolio will be made up of assets that are similar in terms of their quality, occupancy, tenant profile and cash flow and are located in markets with strong economic drivers and stable office demand,” said the REIT.
Slate said occupancy remained stable at 78.6% in the third quarter.
Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate.
Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s.
In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star.
Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.