Ares Management Corporation (NYSE: ARES), a New York City-based global alternative investment manager, announced that certain Ares Real Estate funds are acquiring all commons shares and operating partnership units of Houston-headquartered Whitestone REIT (NYSE: WSR) for $19.00 per share or unit in an all-cash transaction valued at approximately $1.7 billion.
Whitestone’s portfolio includes 56 convenience-focused retail properties totaling approximately 4.9 million square feet in Sun Belt markets including Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio. Upon completion of the transaction, Whitestone will become a private company and cease trading on the NYSE.
“We believe Whitestone has shown the value of high-return smaller spaces occupied by a well-diversified mix of tenants,” said Dave Holeman, CEO of Whitestone. “Our investment strategy is designed to allow businesses to fuel connection and convenience within thriving, dynamic communities. We believe this transaction with Ares is a testament to the value that strategy has created for our business and, ultimately, for our shareholders.”
“Whitestone’s portfolio provides an attractive opportunity to further diversify Ares Real Estate’s footprint with necessity-based retail centers in high-demand, supply-constrained metro regions across Arizona and Texas,” said David Roth, global head of real estate strategy and growth in Ares Real Estate. “This transaction reflects our high conviction in New Economy real estate as today’s consumers are increasingly seeking convenient experiences for their grocery, pharmacy, healthcare, fitness and dining needs. Looking ahead, we are confident in Ares’ ability to support and expand on the Whitestone portfolio and create value for both communities and investors.”
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