Slate Office REIT has agreed to sell 12.3% of its gross leasable area for $101.9 million.

Toronto-based Slate said in its quarterly report that the assets are under contract, or buyers have signed letters of intent to purchase the properties.

The divestments are part of a massive sell-off designed to reduced debt and improve the REIT’s balance sheet. Slate previously announced plans to sell 40% of its gross leasable area.

Slate said it made further progress on its portfolio realignment plan by completing $40.6 million of dispositions in Canada and Ireland as at May 2.

In February, the REIT completed the sale of the Sheridan Exchange in Mississauga, Ont. for a gross purchase price of $19.2 million at share. Slate also completed its divestment of Units 7 & 8 Airways in Dublin for a gross purchase price of €7.5 million.

During the second quarter, Slate completed the sale of 84-86 Chain Lake in Halifax for $10.4 million in gross proceeds.

The REIT is also negotiating divestments of single assets and small portfolios comprising up to five assets with a number of potential buyers across Canada. But Slate does not plan to abandon the office sector.

“We continue to have conviction in the value of our office portfolio and believe the actions the REIT has taken to retain cash, pay down debt, and proactively create value within our portfolio and capital structure will ultimately position us for long-term success,” wrote Brady Welch, Slate’s interim CEO, in a letter to unitholders.

Slate expects the divestment process to continue in 2025.

Photo: Slate Office REIT