Blackstone’s latest global real estate fund is acquiring US grocery-anchored shopping-centre real estate investment trust (REIT) Retail Opportunity Investments Corp (ROIC) in a $4bn (€3.7bn) take-private deal.
Blackstone Real Estate Partners X is offering to acquire each share of Nasdaq-listed ROIC for $17.50 per share, a 34% premium to ROIC’s closing share price on 29 July 2024, the last trading day prior to news reports of a potential sale.
The all-cash transaction values ROIC at approximately $4bn, inclusive of outstanding debt.
ROIC owns a 10.5m sqft portfolio of 93 grocery-anchored retail properties concentrated in Los Angeles, Seattle, San Francisco and Portland.
Stuart A Tanz, president and CEO of ROIC, said: “We are pleased to reach this agreement with Blackstone, as it will provide significant and certain value to our stakeholders.
“This transaction represents the culmination of the steadfast commitment and extraordinary dedication of our talented team and their tireless efforts over the past 15 years. We are confident that Blackstone will position ROIC’s portfolio for continued growth and success.”
Jacob Werner, co-head of Americas acquisitions at Blackstone Real Estate, said: “This transaction reflects our strong conviction in necessity-based, grocery-anchored shopping centers in densely populated geographies.
“The sector is experiencing accelerating fundamentals, benefiting from nearly a decade of virtually no new construction, while demand for brick-and-mortar grocery stores, restaurants, fitness and other lifestyle retailers remains healthy.”
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