Blackstone and Retail Opportunity Investments Corp. announced that they entered into a definitive agreement under which Blackstone Real Estate Partners will buy all outstanding common shares of ROIC for $17.50 per share in an all-cash transaction valued at approximately $4 billion, such as outstanding debt.
ROIC’s portfolio comprises 93 high-quality, grocery-anchored retail properties totaling 10.5 million square feet concentrated in Los Angeles, Seattle, San Francisco, and Portland.
This purchase price represents a 34% premium to ROIC’s closing share price on July 29, 2024, the last trading day before news reports of a potential sale.
The deal has been approved by ROIC’s Board of Directors and is expected to close in the first quarter of 2025, subject to customary closing conditions, including the approval of the Company’s common stockholders.
JPMorgan was ROIC’s exclusive financial advisor, Clifford Chance US was ROIC’s legal counsel, BofA Securities, Morgan Stanley, Newmark, and Eastdil Secured were Blackstone’s financial advisors, and Simpson Thacher & Bartlett was Blackstone’s legal counsel.
KEY QUOTES:
“We are pleased to reach this agreement with Blackstone, as it will provide significant and certain value to our stakeholders. 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.”
– Stuart A. Tanz, President and Chief Executive Officer of ROIC
“This transaction reflects our strong conviction in necessity-based, grocery anchored shopping centers in densely populated geographies. 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.”
– Jacob Werner, Co-Head of Americas Acquisitions at Blackstone Real Estate
