Blackstone Reportedly Nears Retail Opportunity Acquisition
But other firms are vying for the deal too.
Blackstone is close to completing a takeover of San Diego-based Retail Opportunity Investments Corp. (ROIC) and its portfolio of over 90 shopping centers across the western U.S., according to a report from Reuters.
The firm, which has been in talks with ROIC since July, is likely to prevail in the auction for the REIT, which has drawn interest from other private equity firms, including Bain Capital, multiple sources have told the news service..
If successful, Blackstone could finalize the acquisition of ROIC, which has an estimated market value of $3.4 billion, in the coming weeks, the report said. However, sources cautioned that other real estate investment firms could still secure the deal instead.
ROIC posted a 13.8% increase in new leases for the same spaces during the third quarter. Meanwhile, its shares have risen by 11% year-to-date, Reuters reported.
ROIC’s portfolio includes 93 retail properties and one office property, comprising a gross leasable area of 10.6 million square feet. The firm’s latest quarterly filing showed it was 97% leased as of September 30 and had leased or renewed 1.2 million square feet of space in the first nine months of the year.
ROIC also reported it sold a shopping center in Oceanside, California, for $56.6 million in July, and a single-tenant property in Edmonds, Washington, for $12.2 million.
Despite a general slowdown in real estate activity over the past two years, Blackstone has remained active in the market. The firm completed a $10 billion privatization of AIR Communities in June. Blackstone’s latest quarterly filing shows it has $75.9 billion in private equity dry powder and $55.1 billion available for real estate investments.