- Blackstone Real Estate Partners X will acquire Retail Opportunity Investments Corp. for $4B, another major private equity move into grocery-anchored retail.
- ROIC shareholders will receive $17.50 per share, a 34% premium over ROIC’s July 29th, 2024, closing share price.
- The acquisition aligns with Blackstone’s focus on necessity-based retail in high-demand, low-supply markets. The deal is expected to close in 1Q25.
As announced in BusinessWire, Blackstone Real Estate Partners X (BX), has agreed to purchase all outstanding shares of Retail Opportunity Investments Corp. (ROIC) in an all-cash deal worth around $4B, including ROIC’s debt.
Deal Details
ROIC’s portfolio consists of 93 grocery-anchored shopping centers, totaling 10.5 MSF, with properties located in high-density West Coast markets like Los Angeles, Seattle, San Francisco, and Portland.
The major acquisition positions Blackstone to capitalize on ROIC’s strong portfolio of necessity-based retail assets, which has seen increased demand amid limited new construction over the past decade.
Strategic Benefits
Jacob Werner, Co-Head of Americas Acquisitions at Blackstone Real Estate, highlighted the appeal of ROIC’s grocery-anchored retail properties. He explained that demand remains strong for brick-and-mortar retail in high-density areas where new retail developments are scarce.
The transaction reflects Blackstone’s growing confidence in the resilience of grocery-anchored shopping centers and the growing demand for essential services like restaurants, gyms, and grocery stores.
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Leadership Perspective
Stuart A. Tanz, President and CEO of ROIC, acknowledged the strategic value of the acquisition, highlighting the attractive premium for shareholders and the anticipated future growth of ROIC’s portfolio under Blackstone’s ownership.
Tanz praised ROIC’s team for their dedication over the past 15 years, which built ROIC into a West Coast-focused retail investment company known for quality assets in prime locations.
Next Steps
With approval from ROIC’s Board of Directors, the acquisition only awaits a shareholder vote and other customary closing conditions. The deal is expected to close by 1Q25.
