Blackstone in Talks to Buy Out Shopping Center Owner Retail Opportunity Investment
By Mark Hallum July 30, 2024 3:33 pm
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Blackstone (BX) is in talks to acquire about $2 billion worth of shopping centers across the U.S.
The private equity firm is aiming to add Retail Opportunity Investment Corporation’s (ROIC) 10.7 million square feet of shopping centers to its portfolio, Reuters was first to report on Tuesday.
Spokespeople for ROIC and Blackstone did not immediately respond to requests for comment on the possible acquisition.
But while ROIC’s stock price saw a 10 percent dip over the last 12 months, it jumped almost 20 percent Tuesday when investors heard news of the acquisition. ROIC has been raising rents on its commercial tenants who have been making inflation gains from consumers dependent on pharmacies and supermarkets.
In the second quarter alone, ROIC hiked rents 12.4 percent, the 50th consecutive quarter of growth in that regard, according to the real estate investment trust’s second-quarter earnings report. ROIC also reported that it had leased 776,000 square feet of space in the first half of the year.
“Looking ahead, given our leasing success thus far, we are on track to post another strong, potentially record-setting year of leasing activity and solid portfolio operational results,” ROIC CEO and President Stuart Tanz said in a statement regarding its earnings released last week.
San Diego, Calif-based ROIC owns 95 shopping centers situated almost entirely in Washington, Oregon and California.
While Reuters reported another bidder could step in for ROIC, Blackstone has been on an acquisition tear this year. It picked up single-family and apartment rental operator Tricon Residential for $3.5 billion in January, multifamily owner Apartment Income REIT for $10 billion in April, and a $1 billion performing senior mortgage loan portfolio from Deutsche Pfandbriefbank in May.
Mark Hallum can be reached at mhallum@commercialobserver.com.
