Canada’s Slate explores entry to the European property credit market

The Toronto firm, which entered the US real estate debt market in 2021, is considering a similar European strategy.

Toronto-based real assets manager Slate Asset Management is exploring the option of expanding its real estate credit business to Europe, two years after entering the US property debt market.

The firm, which has $13 billion of assets under management, has grown its lending business over the past two years. In 2021, affiliate publication Real Estate Capital USA reported its expansion into the US real estate debt market with the acquisition of New York-based Annaly Capital Management.

The $2.3 billion deal to acquire the US mortgage real estate investment trust represented the previously equity-focused manager’s first foray into the property credit market.

A real estate industry source with offices in Europe and the US told Real Estate Capital Europe Slate was looking to hire personnel to create a parallel property credit business in Europe. A spokesperson for Slate said the firm is “open to new investment opportunities” but declined to comment further.

Slate runs a real estate equity platform in Europe which focuses on the acquisition of cash yielding assets critical to the supply chain, such as grocery and other essential consumer goods providers, healthcare assets and affiliated warehouses and logistics centres.

The firm has completed more than €2.1 billion in investment transactions across the region, including in the UK, Ireland, Germany, Norway, Austria and Slovakia, and currently operates five offices across the UK and continental Europe.

Among its US lending deals, Slate Real Estate Capital, the private credit business of Slate in the US, in August last year provided a $147 million senior loan facility to Prime Group – the largest privately-owned self-storage owner-operator in the US – for the refinancing of three class A self-storage assets located in New York City.