May 8, 2025 – SLB Capital Advisors cited in Nareit’s review of Net Lease REIT acquisition activity
SLB Capital Advisors Managing Partner Scott Merkle shared thoughts with PERE regarding the evolving sale leaseback landscape
“A lot of sale-leaseback activity is in and around M&A,” says Scott Merkle . . . noting that private equity firms frequently pursue these deals when acquiring companies with real estate assets. However, with M&A activity declining both in the US and globally, sale-leaseback volumes have also fallen as a result. “While the market remained healthy last year, it lacked the high levels of M&A-driven activity seen in 2022,” Merkle adds.
“There are a lot of investors that are really attracted to the combination of being able to invest in a property while at the same time effectively being able to invest in the credit of the business,” Merkle says. These transactions provide long-term rental streams, often with predictable rent escalations, making them a reliable yield play.
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