Blackstone Acquires Retail REIT In $4 Billion Deal – Big Bet On American Shoppers

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Blackstone Real Estate (NYSE:BX) is paying $4 billion for Retail Opportunity Investment Corp. (NASDAQ:ROIC) in an all-cash deal, including debt.

The move comes after Reuters reported that the alternative asset manager was negotiating to buy the company. The deal is expected to close in the first quarter of 2025.

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Retail Opportunity Investment, a real estate investment trust (REIT) that owns strip malls across the United States, has experienced positive performance because its tenants can pass on increased costs to consumers amid high inflation.

Retail Opportunity Investments Corp. has increased rents 13.8% in same-space, new lease rents during the third quarter.

"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. "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 acquire ROIC, which owns a unique collection of high-quality assets in some of the most desirable West Coast markets."

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Blackstone will acquire the company, which owns over 90 grocery-anchored shopping centers, at $17.50 per share. With a market capitalization of $2.13 billion, the REIT's shares have risen 18.2% year-to-date.

"We are pleased to reach this agreement with Blackstone, as it will provide significant and certain value to our stakeholders," said Stuart Tanz, president and CEO of Retail Opportunity. "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."