Slate Grocery REIT’s US$2.3B sale will end a 12-year run on the Toronto Stock Exchange for a Canadian-built investment vehicle that grew from 29 U.S. shopping centres into a 115-property portfolio.

The deal follows a sharp selloff last week after the REIT suspended its monthly distribution Wednesday while its strategic review continued. Its Canadian-dollar units plunged 25% Thursday and another 5.7% Friday, losing nearly 30% over two sessions to close at $10.75.

On Monday, Slate Grocery agreed to be acquired by Brixmor Property Group and Everview Partners for US$13 per unit in cash. Connect’s coverage details how the buyers will divide the 15.2M-SF portfolio.

The REIT traces its roots to 2014, when several Slate-sponsored investment vehicles holding U.S. grocery-anchored properties were combined to create Slate Retail REIT. It debuted on the TSX that April with 29 properties across 14 states and was renamed Slate Grocery REIT in 2020.

The sale follows a strategic review launched in May after affiliates of external manager Slate Asset Management made an unsolicited proposal. Slate said the process ultimately included a competitive auction.

“We are immediately focused on what comes next: redeploying capital into grocery-anchored real estate in North America,” CEO Blair Welch said.

Because the deal is structured as an Ontario plan of arrangement, it requires a unitholder vote and standard court approval before it can close.

Slate Asset Management’s management agreement will also end at closing in exchange for a US$50M payment. The REIT will then be taken private and delisted from the TSX.

Pictured: Sheridan Square in Dania Beach, Fla., is part of Slate Grocery REIT’s U.S. portfolio.