Real estate firms MW Group, Blackstone Real Estate and DivcoWest have teamed up to acquire Hawaii-based grocery-anchored shopping centre owner Alexander & Baldwin (A&B) in a $2.3bn (€1.97bn) take-private deal.
The amount being offered per share represents a 40% premium over A&B’s closing price prior to the announcement.
As Hawaii’s largest owner of grocery-anchored shopping centres, A&B holds a portfolio of approximately 4m sqft of commercial space. Its assets comprise 21 retail, 14 industrial and four office properties, in addition to fee interests in 146 acres of ground leases.
As part of the transaction, the investor group intend to invest over $100m across the portfolio to enhance the properties.
The all-cash transaction values A&B at an enterprise value of approximately $2.3bn, including outstanding debt.
Stephen Metter, CEO at MW Group, said: “As a Hawaii-grown company founded over 35 years ago, we have seen firsthand the community contributions and lasting value that Alexander & Baldwin has created across generations.
“We look forward to supporting the Company’s legacy and magnifying our collective impact on the communities we serve.”
David Levine, co-head of Americas acquisitions for Blackstone Real Estate, said: “We’re excited to reach this agreement, which deepens our commitment to Hawaii and our long-standing support for its local businesses.
“Our approach has always centered on operating responsibly and creating new opportunities for community members, including the more than 9,000 jobs created and supported by our investments in Hawaii.”
Caleb Cragle, head of strategic investments, DivcoWest, said: “Alexander & Baldwin has built an outstanding portfolio and we look forward to working with our partners and the Company to help continue its success.”
Lance Parker, president and CEO of A&B, said: “For 155 years, A&B has grown alongside Hawaii, shaped by the people, values and communities that define these islands. Today, we are taking an important step toward our long-term vision for A&B as stewards of Hawaii’s premier commercial real estate.
“As a private company supported by the deep real estate expertise and experience of our new ownership group, A&B will have greater capacity to serve its tenants and communities. In our next chapter, we will continue focusing on real estate that supports the daily lives of residents, overseeing our properties with care and remaining steadfast in our role as partners for Hawaii.”
Eric Yeaman, chairman of the A&B board, said: “We’re pleased to reach this agreement, which delivers significant, immediate and certain value to our shareholders while strengthening A&B’s ability to serve the diverse needs of communities across Hawaii.
“The board is confident that today’s news is in the best interests of all of A&B’s stakeholders. It delivers a substantial cash premium for shareholders and long-term benefits for our valued employees, tenants and communities.”
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