Blackstone and Retail Opportunity Investments Corp. announced via a press release this week that they have entered into a definitive agreement under which Blackstone Real Estate Partners X will acquire all outstanding common shares of ROIC for $17.

Owners of strip malls, pharmacy chains and retail stores have managed to pass on increased costs from high inflation to consumers over the past year, benefiting landlords like ROIC.

Blackstone has announced its acquisition of Retail Opportunity Investments Corp. (ROIC) in a deal valued at approximately $4 billion. The all-cash transaction, set at $17.50 per share, marks a substantial premium of 34% over ROIC's closing share price on July 29, 2024, just before rumors of a potential sale began circulating.

Given Retail Opportunity's high leverage and potential acquisition by Blackstone, the risk/reward balance favors selling ROIC stock. See more here.

Blackstone Real Estate Partners X will pay $17.50 per share for outstanding common shares, the agreement between the two parties says. Subject to usual closing conditions and shareholder approval, the deal, authorized by ROIC's board, is scheduled to conclude in the first quarter of 2025.

Blackstone (NYSE:BX) agreed to acquire Retail Opportunity Investments  (NASDAQ:ROIC) in an all-cash deal valued at ~$4B, including debt, though its Blackstone Real Estate Partners X fund, the companies said on Wednesday.

The purchase of Retail Opportunity Investments reflects the continued need for grocery-anchored shopping centers in metropolitan areas, Blackstone Real Estate Co-Head of Americas Acquisitions Jacob Werner said.