Blackstone (NYSE: BX) and Retail Opportunity Investments Corp. (NASDAQ: ROIC) announced a definitive agreement under which Blackstone Real Estate Partners X will acquire all outstanding common shares of ROIC for $17.50 per share in an all-cash transaction valued at approximately $4 billion, including outstanding debt.
ROIC is a real estate investment trust with a portfolio consisting of 93 grocery-anchored retail properties totaling 10.5 million square feet concentrated in Los Angeles, Seattle, San Francisco and Portland. The purchase price represents a premium of 34% to ROIC’s closing share price on July 29, the last trading day prior to news reports of a potential sale.
“This transaction reflects our strong conviction in necessity-based, grocery anchored shopping centers in densely populated geographies,” said Jacob Werner, co-head of Americas acquisitions at Blackstone Real Estate. “The sector is experiencing accelerating fundamentals, benefiting from nearly a decade of virtually no new construction, while demand for brick-and-mortar grocery stores, restaurants, fitness and other lifestyle retailers remains healthy. We are pleased to be acquiring ROIC, which owns a unique collection of high-quality assets in some of the most desirable West Coast markets.”
“We are pleased to reach this agreement with Blackstone, as it will provide significant and certain value to our stakeholders,” added Stuart A. Tanz, president and CEO of ROIC. “This transaction represents the culmination of the steadfast commitment and extraordinary dedication of our talented team and their tireless efforts over the past 15 years. We are confident that Blackstone will position ROIC’s portfolio for continued growth and success.”
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