Blackstone Real Estate is to acquire Retail Opportunity Investments Corp (ROIC), which specialises in grocery-anchored retail properties, in an all-cash take-private deal valued at approximately $4bn, including debt.
Under the terms of the agreement, Blackstone will acquire all outstanding common shares of ROIC at $17.50 per share—a 34% premium over ROIC’s closing price on 29 July, 2024, just before reports of a potential sale surfaced.
ROIC has a portfolio of 93 locations comprising 10.5 million square feet in prime markets including Los Angeles, Seattle, San Francisco, and Portland.
“We are pleased to reach this agreement with Blackstone, as it will provide significant and certain value to our stakeholders,” said Stuart As Tanz, ROIC’s President and CEO, adding that the acquisition reflects the dedication of ROIC’s team over the past 15 years and is confident Blackstone will enable the company’s growth trajectory.
Jacob Werner, Co-Head of Americas Acquisitions at Blackstone Real Estate, said: “This transaction reflects our strong conviction in necessity-based retail centres in densely populated areas,” emphasising that demand for grocery, dining, and fitness establishments has remained robust, bolstered by limited new construction over the past decade.
The transaction has received unanimous approval from ROIC’s Board of Directors and is expected to close in the first quarter of 2025, pending customary closing conditions, including approval from ROIC’s shareholders.
JPMorgan served as ROIC’s financial advisor, while Clifford Chance US provided legal counsel. Blackstone was advised by BofA Securities, Morgan Stanley & Co., Newmark, Eastdil Secured, and received legal counsel from Simpson Thacher & Bartlett.
