02:49 PM EST, 11/06/2024 (MT Newswires) -- Blackstone (BX) agreed to buy Retail Opportunity Investments ( ROIC ) in a $4 billion deal that will see the shopping-center owner become a private company.

The cash consideration of $17.50 per share represents a premium of 34% to Retail Opportunity Investments' ( ROIC ) closing share price on July 29, the last trading day before speculation about a potential deal surfaced, the companies said Wednesday.

Shares of Blackstone were up 4.5% in afternoon trade while those of the real estate investment trust rose 4.7%.

"We are pleased to reach this agreement with Blackstone, as it will provide significant and certain value to our stakeholders," Retail Opportunity Investments ( ROIC ) Chief Executive Stuart Tanz said in a statement.

Retail Opportunity Investments ( ROIC ) owned 93 shopping centers with a combined total of about 10.5 million square feet as of Sept. 30, concentrated in Los Angeles, Seattle, San Francisco and Portland.

"This transaction reflects our strong conviction in necessity-based, grocery anchored shopping centers in densely populated geographies," said Jacob Werner, co-head of Americas Acquisitions at Blackstone Real Estate. "The sector is experiencing accelerating fundamentals, benefiting from nearly a decade of virtually no new construction, while demand for brick-and-mortar grocery stores, restaurants, fitness and other lifestyle retailers remains healthy."

The deal, which includes the assumption of the REIT's debt, is expected to close in the first quarter of 2025 after Retail Opportunity Investments' ( ROIC ) shareholder approval.

Retail Opportunity Investments ( ROIC ) said in October that third-quarter rental revenue rose to $82.4 million from $78.3 million the year earlier, just above the average analyst estimate on Capital IQ of $82.3 million. Funds from operations dipped to $0.25 per share from $0.27, meeting Wall Street's view.

At the time, the REIT lowered its full-year per-share FFO guidance to a range of $1.03 to $1.05 from its previous forecast of between $1.04 and $1.07.

Price: 177.00, Change: +7.38, Percent Change: +4.35