Slate Asset Management is continuing to shed its office holdings after triggering its exit from Slate Office Real Estate Investment Trust (REIT) earlier this month. The investment management firm has announced plans to sell its interest in an 11-building private office portfolio located in midtown Toronto and Ottawa, in keeping with the company’s sharpened focus on what it defines as “essential” real estate.

“Over 80 per cent of our real estate portfolio is comprised of asset types outside of traditional office spaces, and we believe this is an opportune time to direct our team’s collective energy into the areas of our business that are best positioned to drive value for our partners,” says Brady Welch, co-founding partner at Slate Asset Management.

The company’s global portfolio is now largely comprised of properties deemed to be non-discretionary uses, such as grocery, residential, industrial, logistics and health care.

“While we continue to believe the outlook for the office market will improve over time, we are focusing on the opportunity to scale our investments in sectors that are benefitting from strong tailwinds and high growth,” concurs Blair Welch, Slate’s other co-founding partner.

Both Welch brothers resigned from Slate Office REIT’s board of trustees on October 2 in sync with initiating the process to terminate Slate’s external management agreement. That’s set to occur at the end of March 2025 with a transition plan promised for an orderly transfer of responsibilities and functions.

“We are working collaboratively with Slate to internalize management of the REIT,” says Sam Altman, chair of the Slate Office REIT board of trustees.