Blackstone Real Estate Partners X, an affiliate of Blackstone, has signed a definitive agreement to acquire all outstanding common shares of Retail Opportunity Investments Corp. (ROIC) at $17.50 per share in an all-cash transaction. This acquisition values ROIC at approximately $4 billion, inclusive of outstanding debt. ROIC’s assets include 93 grocery-anchored retail properties, spanning 10.5 million square feet across major West Coast markets such as Los Angeles, Seattle, San Francisco, and Portland.
The transaction price offers a 34% premium over ROIC’s closing share price on July 29, 2024, the last trading day before speculation of a potential sale surfaced.
CEO Comments on Transaction Value
Stuart A. Tanz, ROIC’s President and Chief Executive Officer, stated, “We are pleased to reach this agreement with Blackstone, as it will provide significant and certain value to our stakeholders. This transaction is the result of our team’s dedication over the past 15 years. We trust Blackstone will continue to position ROIC’s portfolio for long-term growth and success.”
Blackstone’s Perspective on the Acquisition
Jacob Werner, Co-Head of Americas Acquisitions at Blackstone Real Estate, remarked, “This acquisition aligns with our commitment to necessity-based, grocery-anchored shopping centers located in densely populated regions. The sector benefits from a sustained period of limited new construction and ongoing demand for essential retail services. We are pleased to acquire ROIC’s portfolio, comprising high-quality assets across prime West Coast markets.”
Transaction Details and Closing Timeline
Approved by ROIC’s Board of Directors, the transaction is expected to close in the first quarter of 2025, pending customary conditions and approval from ROIC stockholders.
Advisory Roles
For this transaction, J.P. Morgan served as ROIC’s exclusive financial advisor, and Clifford Chance US LLP acted as its legal counsel. Blackstone’s advisors included BofA Securities, Morgan Stanley & Co. LLC, Newmark, and Eastdil Secured, with legal counsel from Simpson Thacher & Bartlett LLP.
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By Proptechbuzz
By Ravi Kumar
