Deal adds 93 grocery retail centers across West Coast to Blackstone's portfolio
Blackstone has agreed to buy Retail Opportunity Investments Corp. (ROIC), a real estate investment trust (REIT) that specializes in grocery-anchored retail properties, for $4 billion.
The real estate giant has announced plans to take ROIC private in a $4 billion all-cash deal. Under the terms of the agreement, Blackstone will acquire all outstanding shares of ROIC for $17.50 per share. The $4 billion purchase price represents a 34% premium to ROIC’s closing share price on July 29, the last trading day before sale discussions were reported.
ROIC’s portfolio includes 93 grocery-anchored shopping centers across major West Coast markets, including Los Angeles, Seattle, San Francisco, and Portland. These properties span a total of 10.5 million square feet in densely populated areas where demand for essential retail spaces remains high.
“This transaction reflects our strong conviction in necessity-based, grocery anchored shopping centers in densely populated geographies,” Jacob Werner, co-head of Americas acquisitions at Blackstone Real Estate, said in a Press release. “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.”
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The acquisition has been approved by ROIC’s board of directors and is expected to close in the first quarter of 2025, pending customary closing conditions and shareholder approval.
J.P. Morgan acted as ROIC’s exclusive financial advisor, with Clifford Chance US LLP as legal counsel. Blackstone’s advisors included BofA Securities, Morgan Stanley & Co. LLC, Newmark, and Eastdil Secured, while Simpson Thacher & Bartlett LLP provided legal counsel.
“We are pleased to reach this agreement with Blackstone, as it will provide significant and certain value to our stakeholders,” added ROIC president and CEO Stuart Tanz. “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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