Blackstone Real Estate to Take Retail Opportunity Investments Private for $4 Billion
Blackstone has announced plans to acquire Retail Opportunity Investments Corp. (ROIC) in an all-cash transaction valued at approximately $4 billion, including outstanding debt. The deal values ROIC shares at $17.50 per share, representing a 34% premium to ROIC's closing price on July 29, 2024. ROIC's portfolio includes 93 grocery-anchored retail properties totaling 10.5 million square feet across Los Angeles, Seattle, San Francisco, and Portland. The transaction, approved by ROIC's Board of Directors, is expected to close in the first quarter of 2025, subject to stockholder approval and customary conditions.
Blackstone ha annunciato piani per acquisire Retail Opportunity Investments Corp. (ROIC) in una transazione interamente in contante del valore di circa 4 miliardi di dollari, comprese le obbligazioni in essere. L'affare valuta le azioni di ROIC a 17,50 dollari per azione, rappresentando un primo del 34% rispetto al prezzo di chiusura di ROIC del 29 luglio 2024. Il portafoglio di ROIC include 93 proprietà commerciali ancorate a supermercati per un totale di 10,5 milioni di piedi quadrati tra Los Angeles, Seattle, San Francisco e Portland. La transazione, approvata dal Consiglio di Amministrazione di ROIC, dovrebbe chiudere nel primo trimestre del 2025, soggetta all'approvazione degli azionisti e alle condizioni consuete.
Blackstone ha anunciado planes para adquirir Retail Opportunity Investments Corp. (ROIC) en una transacción en efectivo valorada en aproximadamente 4 mil millones de dólares, incluyendo la deuda pendiente. El acuerdo valora las acciones de ROIC en 17,50 dólares por acción, lo que representa una prima del 34% sobre el precio de cierre de ROIC del 29 de julio de 2024. El portafolio de ROIC incluye 93 propiedades comerciales ancladas en supermercados que totalizan 10,5 millones de pies cuadrados en Los Ángeles, Seattle, San Francisco y Portland. La transacción, aprobada por la Junta Directiva de ROIC, se espera que se cierre en el primer trimestre de 2025, sujeto a la aprobación de los accionistas y a las condiciones habituales.
블랙스톤은 Retail Opportunity Investments Corp. (ROIC)를 약 40억 달러 규모의 전액 현금 거래로 인수하겠다는 계획을 발표했습니다. 이번 거래는 ROIC 주식을 주당 17.50 달러로 평가하며, 이는 2024년 7월 29일 ROIC의 종가보다 34% 프리미엄을 나타냅니다. ROIC의 포트폴리오는 로스앤젤레스, 시애틀, 샌프란시스코, 포틀랜드에 걸쳐 총 1,050만 평방피트의 93개 식료품점 거점 소매 부동산이 포함되어 있습니다. ROIC 이사회가 승인한 이번 거래는 주주 승인 및 일반적인 조건을 수반하여 2025년 1분기 중 완료될 것으로 예상됩니다.
Blackstone a annoncé des projets d'acquisition de Retail Opportunity Investments Corp. (ROIC) dans le cadre d'une transaction entièrement en espèces d'une valeur d'environ 4 milliards de dollars, y compris la dette en cours. L'accord valorise les actions de ROIC à 17,50 dollars par action, ce qui représente une prime de 34% par rapport au prix de clôture de ROIC du 29 juillet 2024. Le portefeuille de ROIC comprend 93 propriétés de détail ancrées par des épiceries totalisant 10,5 millions de pieds carrés à travers Los Angeles, Seattle, San Francisco et Portland. La transaction, approuvée par le conseil d'administration de ROIC, devrait se conclure au premier trimestre 2025, sous réserve de l'approbation des actionnaires et des conditions habituelles.
Blackstone hat Pläne angekündigt, Retail Opportunity Investments Corp. (ROIC) in einer bar bezahlten Transaktion im Wert von etwa 4 Milliarden Dollar zu übernehmen, einschließlich der bestehenden Schulden. Der Deal bewertet die ROIC-Aktien mit 17,50 Dollar pro Aktie, was einem 34% Premium zum Schlusskurs von ROIC am 29. Juli 2024 entspricht. ROICs Portfolio umfasst 93 Einzelhandelsimmobilien, die an Lebensmittelläden gebunden sind, mit einer Gesamtfläche von 10,5 Millionen Quadratfuß in Los Angeles, Seattle, San Francisco und Portland. Die Transaktion, die vom Vorstand von ROIC genehmigt wurde, soll im ersten Quartal 2025 abgeschlossen werden, vorbehaltlich der Zustimmung der Aktionäre und üblicher Bedingungen.
- 34% premium offered to shareholders over last trading price
- $4 billion transaction value demonstrates significant market interest
- All-cash deal provides immediate liquidity for shareholders
- Strategic acquisition of 93 high-quality retail properties in prime West Coast locations
- Loss of investment opportunity in public markets for ROIC shareholders
- Transaction subject to regulatory and shareholder approval risks
Insights
This
The deal's timing is particularly strategic given the sector's favorable fundamentals - new construction supply and steady demand for essential retail spaces. For Blackstone, this acquisition enhances their real estate portfolio with stable, recession-resistant assets. The all-cash transaction structure demonstrates Blackstone's strong liquidity position and confidence in the asset class's long-term value proposition.
This acquisition highlights a broader market trend toward grocery-anchored retail centers, which have proven resilient compared to other retail formats. The West Coast markets targeted in this deal are characterized by high population density, strong income demographics and significant barriers to new development - factors that typically support stable occupancy rates and rental growth.
The timing aligns with a market shift where institutional investors are increasingly recognizing the value of necessity-based retail, particularly in supply-constrained markets. The
The purchase price represents a premium of
“We are pleased to reach this agreement with Blackstone, as it will provide significant and certain value to our stakeholders,” said Stuart A. Tanz, President and Chief Executive Officer 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.”
Jacob Werner, Co-Head of Americas Acquisitions at Blackstone Real Estate, said, “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.”
The transaction 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.
J.P. Morgan acted as ROIC’s exclusive financial advisor. Clifford Chance US LLP served as ROIC’s legal counsel. BofA Securities, Morgan Stanley & Co. LLC, Newmark, and Eastdil Secured acted as Blackstone’s financial advisors. Simpson Thacher & Bartlett LLP served as Blackstone’s legal counsel.
About Retail Opportunity Investments Corp.
Retail Opportunity Investments Corp. (NASDAQ: ROIC), is a fully-integrated, self-managed real estate investment trust (REIT) that specializes in the acquisition, ownership and management of grocery-anchored shopping centers located in densely-populated, metropolitan markets across the West Coast. As of September 30, 2024, ROIC owned 93 shopping centers encompassing approximately 10.5 million square feet. ROIC is the largest publicly-traded, grocery-anchored shopping center REIT focused exclusively on the West Coast. ROIC is a member of the S&P SmallCap 600 Index and has investment-grade corporate debt ratings from Moody’s Investor Services, S&P Global Ratings and Fitch Ratings, Inc. Additional information is available at: www.roireit.net.
About Blackstone Real Estate
Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has US
Forward-Looking Statements. Certain information contained in this press-release (the “Material”) constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology or the negatives thereof. These may include statements about plans, objectives and expectations with respect to future operations. Such forward‐looking statements are inherently uncertain and there are or may be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. Blackstone believes these factors include, but are not limited to, those described under the section entitled “Risk Factors” in its Annual Report on Form 10‐K for the most recent fiscal year, and any such updated factors included in its periodic filings with the Securities and Exchange Commission, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Materials and in the filings. Blackstone undertakes no obligation to publicly update or review any forward‐looking statement, whether as a result of new information, future developments or otherwise.
Opinions. Opinions expressed reflect the current opinions of the named persons or Blackstone where indicated, as of the date appearing in the Material only and are based on opinions of the current market environment, which are subject to change. Certain information contained in this Material discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice.
Third Party Information. Certain information contained in this Material has been obtained from sources outside Blackstone, which in certain cases have not been updated through the date hereof. While such information is believed to be reliable for purposes used herein, no representations are made as to the accuracy or completeness thereof and none of Blackstone, its funds, nor any of their affiliates takes any responsibility for, and has not independently verified, any such information.
ROIC Forward Looking Statements. This communication includes certain disclosures from ROIC (as used in this paragraph only, the “Company”) which contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and in Section 21F of the Securities and Exchange Act of 1934, as amended, including but not limited to those statements related to the transaction, including financial estimates and statements as to the expected timing, completion and effects of the transaction. When used herein, the words “believes,” “anticipates,” “projects,” “should,” “estimates,” “expects,” “guidance” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from future results expressed or implied by such forward-looking statements. Important factors, risks and uncertainties that could cause actual results to differ materially from such plans, estimates or expectations include but are not limited to: (i) the parties’ ability to complete the transaction on the anticipated terms and timing, or at all, including the Company’s ability to obtain the required stockholder approval, and the parties’ ability to satisfy the other conditions to the completion of the transaction; (ii) potential litigation relating to the transaction that could be instituted against the Company or its directors, managers or officers, including the effects of any outcomes related thereto; (iii) the risk that disruptions from the transaction will harm the Company’s business, including current plans and operations, including during the pendency of the transaction; (iv) the ability of the Company to retain and hire key personnel; (v) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the transaction; (vi) legislative, regulatory and economic developments; (vii) potential business uncertainty, including changes to existing business relationships, during the pendency of the transaction that could affect the Company’s financial performance; (viii) certain restrictions during the pendency of the transaction that may impact the Company’s ability to pursue certain business opportunities or strategic transactions; (ix) unpredictability and severity of catastrophic events, including but not limited to acts of terrorism, outbreaks of war or hostilities or pandemic, as well as management’s response to any of the aforementioned factors; (x) the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (xi) the occurrence of any event, change or other circumstance that could give rise to the termination of the transaction, including in circumstances requiring the Company to pay a termination fee; (xii) those risks and uncertainties set forth under the headings “Statements Regarding Forward-Looking Information” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as such risk factors may be amended, supplemented or superseded from time to time by other reports filed by the Company with the Securities and Exchange Commission (the “SEC”) from time to time, which are available via the SEC’s website at www.sec.gov; and (xiii) those risks that will be described in the proxy statement that will be filed with the SEC and available from the sources indicated below.
These risks, as well as other risks associated with the transaction, will be more fully discussed in the proxy statement that will be filed by the Company with the SEC in connection with the transaction. There can be no assurance that the transaction will be completed, or if it is completed, that it will close within the anticipated time period. These factors should not be construed as exhaustive and should be read in conjunction with the other forward-looking statements. The forward-looking statements relate only to events as of the date on which the statements are made. The Company and Blackstone do not undertake any obligation to publicly update or review any forward-looking statement except as required by law, whether as a result of new information, future developments or otherwise. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. You should specifically consider the factors identified in this communication that could cause actual results to differ. Furthermore, new risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect the Company or Blackstone.
Information regarding such risks and factors is described in ROIC’s filings with the SEC, including its most recent Annual Report on Form 10-K, which is available at: www.roireit.net.
Important Additional Information and Where to Find It
This communication is being made in connection with the transaction. In connection with the transaction, the Company will file a proxy statement on Schedule 14A and certain other documents regarding the transaction with the SEC. Promptly after filing its definitive proxy statement with the SEC, the definitive proxy statement will be mailed to stockholders of the Company. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, COMPANY STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT THAT WILL BE FILED BY THE COMPANY WITH THE SEC (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTION. Company stockholders will be able to obtain, free of charge, copies of such documents filed by the Company when filed with the SEC in connection with the transaction at the SEC’s website (http://www.sec.gov). In addition, the Company’s stockholders will be able to obtain, free of charge, copies of such documents filed by the Company at the Company’s website (www.roireit.net). Alternatively, these documents, when available, can be obtained free of charge from the Company upon written request to the Company at 11250 El Camino Real, Suite 200,
Participants in the Solicitation
The Company and certain of its directors, executive officers and other employees may be deemed to be participants in the solicitation of proxies from stockholders of the Company in connection with the transaction. Additional information regarding the identity of the participants, and their respective direct and indirect interests in the transaction, by security holdings or otherwise, will be set forth in the proxy statement and other relevant materials to be filed with the SEC in connection with the transaction (if and when they become available). You may obtain free copies of these documents using the sources indicated above.
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ROIC
Stuart A. Tanz
(858) 255-4901
stanz@roireit.net
Blackstone
Claire Keyte
(646) 482-8753
Claire.Keyte@Blackstone.com
Source: Blackstone
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