Blackstone Real Estate and Retail Opportunity Investments Corp. (ROIC) have announced a definitive agreement in which Blackstone Real Estate Partners X will acquire all outstanding common shares of ROIC for $17.50 per share. This all-cash transaction is valued at approximately $4 billion, including outstanding debt. ROIC's portfolio comprises 93 grocery-anchored retail properties totaling 10.5 million square feet, primarily located in Los Angeles, Seattle, San Francisco, and Portland.
The agreed purchase price represents a 34% premium to ROIC’s closing share price on July 29, 2024, the last trading day before reports of a potential sale emerged.
Stuart A. Tanz, President and CEO of ROIC, expressed satisfaction with the agreement: "We are pleased to reach this agreement with Blackstone, as it will provide significant and certain value to our stakeholders." He further acknowledged the dedication of ROIC's team over the past 15 years and expressed confidence in Blackstone's ability to position ROIC’s portfolio for future growth.
Jacob Werner, Co-Head of Americas Acquisitions at Blackstone Real Estate, commented on the transaction: "This transaction reflects our strong conviction in necessity-based, grocery anchored shopping centers in densely populated geographies." He noted that the sector benefits from nearly a decade without new construction while demand remains healthy for brick-and-mortar grocery stores and other retailers.
The transaction has received approval from ROIC’s Board of Directors and is expected to close in the first quarter of 2025 after customary conditions are met, including stockholder approval.
J.P. Morgan served as ROIC’s exclusive financial advisor with Clifford Chance US LLP providing legal counsel. BofA Securities, Morgan Stanley & Co. LLC, Newmark, and Eastdil Secured acted as financial advisors for Blackstone while Simpson Thacher & Bartlett LLP provided legal counsel.
ROIC is a real estate investment trust specializing in grocery-anchored shopping centers on the West Coast. As of September 30, 2024, it owned 93 such centers covering approximately 10.5 million square feet.
Blackstone is recognized globally for its real estate investments with $325 billion under management across various sectors including logistics and hospitality.
Both companies issued forward-looking statements about plans related to this transaction while cautioning about potential risks that could affect outcomes or results.