Blackstone Eyes $2 Billion Acquisition of ROIC Amid Shopping Center Boost

Private equity firm Blackstone is in early talks to acquire Retail Opportunity Investments Corp (ROIC), a U.S. shopping center owner valued at $2 billion. Following declines in ROIC's shares, Blackstone sees potential in the company's supermarket and drugstore properties. The deal is uncertain and another bidder may emerge.

Private equity firm Blackstone is reportedly in early discussions to acquire Retail Opportunity Investments Corp (ROIC), which owns U.S. shopping centers with a market valuation nearing $2 billion. Sources familiar with the situation disclosed that Blackstone is eyeing ROIC after the latter's shares fell over 10% in the past year, underperforming other real estate investment trusts (REITs).

Blackstone's approach signals its belief in the value of ROIC's properties, which primarily include supermarkets and drugstores. However, no deal is guaranteed, and another bidder could surface. Both Blackstone and ROIC have declined to comment on the matter.

ROIC's stock surged by up to 20% on the news during afternoon trading on Tuesday. The company, which is headquartered in San Diego, California, owns 95 shopping centers totaling about 10.7 million square feet. Recently, it achieved a 12.4% hike in same-space new leases in Q2 2024, driven by rising rents amidst limited new retail construction.

(With inputs from agencies.)