Also This Week: Bi-Lo, Winn Dixie Files IPO To Continue Growth; and Capital Financing Round-Up
Slate Properties Inc., a Toronto-based commercial real estate
investor and asset manager, last week filed to launch a new REIT to be called Slate U.S. Opportunity (No. 3) Realty Trust.
Slate’s principals, Blair and Brady Welch, are forming the trust to invest in properties in secondary markets in the U.S. focusing on anchored retail properties in such cities as Pittsburgh, Columbus and Charlotte.
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Slate Properties said it believes secondary U.S. markets are larger than primary Canadian markets. By way of example, the firm cited the 50th most populous metropolitan statistical area in the U.S. is Birmingham-Hoover, AL (1.13 million), roughly equal to Edmonton, Alberta (1.16 million) which is the 6th largest census metropolitan area in Canada. Toronto would rank 8th in the U.S. by population.
Slate will look to acquire property priced from $2 million to $30 million (including the impact of leverage). Each such transaction would be expected to require approximately $1 million to $10 million of equity investment.
Slate has opted to focus on transactions of this size and price range to limit competition, believing these properties are generally too small to attract large institutional investors yet too large for private investors.
Bi-Lo, Winn Dixie Files IPO To Continue Growth
Southeastern Grocers LLC, parent company of Bi-Lo and Winn-Dixie supermarkets, filed a registration statement for a proposed initial public offering of shares of common stock. The number of shares to be offered and the price range for the offering have not yet been determined.
Based in Jacksonville, FL, Southeastern Grocers currently operates 685 stores serving areas in Florida, Georgia, Alabama, Louisiana, Mississippi, South Carolina, North Carolina and Tennessee.
The grocer has been on an aggressive expansion roll this year. This month, it entered into an agreement with Piggly Wiggly Carolina Company Inc. to purchase 21 Piggly Wiggly operating supermarkets in South Carolina and Georgia for $35 million in cash.
In May, it agreed to a merger with Delhaize America LLC in which it will acquire 155 operating supermarkets under the Sweetbay, Harveys and Reid’s banners, plus 10 previously closed locations, for $265 million.
It has been funding this expansion through selling noncore properties and sale/leasebacks. This month, it agreed to a sale leaseback transaction for six of its stores in Florida and Louisiana for $45 million. In July it agreed to sell seven leased stores for $59 million to Publix Super Markets Inc. In April one of its subsidiaries entered into a sale leaseback transaction to sell its Baldwin, FL, distribution center to AR Capital LLC.
Capital Financing Round-Up
The Howard Hughes Corp.
plans to offer $500 million aggregate principal amount of senior notes due 2021 in a private transaction. It intends to use the net proceeds from the offering for development, acquisitions and other general corporate purposes. Howard Hughes owns, manages and develops commercial, residential and mixed-use real estate throughout the U.S.
American Residential Properties Inc.
amended and restated its senior secured revolving credit facility, increasing its maximum borrowing amount from $150 million to $290 million. In addition, the amended and restated credit agreement has an accordion feature that increases the maximum borrowing amount to $500 million. Bank of America, Morgan Stanley Senior Funding Inc., KeyBank, Barclays Bank, Jeffries Group Inc., Raymond James Bank, and Comerica Bank serve as lenders. American Residential Properties acquires, owns, and manages single-family homes as rental properties.
The New Mexico State Investment Council approved an investment of $100 million in Landmark Equity Partners XV LP
. Landmark has raised more than $9 billion across 29 private equity and real estate-focused investment vehicles, with a principal focus on secondary transactions, since its founding more than 23 years ago. The firm has invested in more than 1,400 partnership interests that include more than 15,300 underlying company and property investments. Landmark is currently led by managing partners Francisco Borges and Timothy Haviland at its Simsbury, CT headquarters. Fund XV will invest primarily in secondary transactions of partnerships targeting buyout, venture capital and mezzanine debt investments in Western markets. The fund will be diversified by investment strategy, sector, geography, vintage year, and investment manager.
held its first closing of Regent Office Fund II LLC with $60 million in capital commitments to date. ROF II was formed to capitalize on the opportunity to acquire undervalued office buildings and related assets in markets throughout the Western United States, including Texas. ROF II’s first closing includes an investment by BlackRock, the world’s largest asset manager.
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