Blackstone Group is reportedly engaged in advanced negotiations to acquire Retail Opportunity Investments Corp (ROIC, Financial), a company that owns several shopping centers in the United States, with a market value of $3.4 billion, including debt. Sources close to the matter suggest that, should discussions succeed, the deal could be finalized in the coming weeks. These individuals requested anonymity due to the confidential nature of the talks.
The transaction has drawn interest from other private equity firms, including Bain Capital. Earlier this year, Bain Capital's real estate division partnered with 11North Partners, a retail-focused investor group, to acquire and operate outdoor retail centers across North America. However, Blackstone is currently seen as the frontrunner in the bid for ROIC.
There is no certainty that Blackstone will reach an agreement, as competing offers could still emerge. ROIC, which primarily operates supermarkets and drug stores, has seen its stock price (ROIC, Financial) rise approximately 11% this year. Despite this increase, it has underperformed compared to other real estate investment trusts, making it an attractive target for acquisition by companies like Blackstone.
