Blackstone is ending 2025 with a real estate buying spree. Blackstone Real Estate and DivcoWest (collectively, the “Investor Group”) will acquire all outstanding common shares of Alexander & Baldwin Inc. (A&B), a Hawaiʻi-based owner, operator and developer of high-quality commercial real estate in Hawaiʻi, for approximately $2.3 billion. As a result of this transaction, A&B will become a private company.
In addition, Bloomberg reports that Blackstone is acquiring a portfolio of grocery-anchored shopping centers in Dallas, Houston and San Antonio, Texas for $440 million.
A&B is the largest owner of high-quality, grocery-anchored shopping centers in Hawai‘i. Its portfolio consists of approximately 4.0 million square feet of commercial space, including 21 retail centers, 14 industrial assets and four office properties, as well as fee interests in 146 acres of ground lease assets.
“For 155 years, A&B has grown alongside Hawaiʻi, shaped by the people, values and communities that define these islands,” said Lance Parker, president and chief executive officer of A&B. “Today, we are taking an important step toward our long-term vision for A&B as stewards of Hawai‘i’s premier commercial real estate. As a private company supported by the deep real estate expertise and experience of our new ownership group, A&B will have greater capacity to serve its tenants and communities. In our next chapter, we will continue focusing on real estate that supports the daily lives of residents, overseeing our properties with care and remaining steadfast in our role as partners for Hawai‘i.”
Blackstone Real Estate has a long history of ownership in Hawai‘i, including iconic hospitality properties, such as Grand Wailea, The Ritz-Carlton Maui, Kapalua, Turtle Bay and Hilton Hawaiian Village, as well as retail property Pearlridge Center and high-quality rental housing on O‘ahu.
“We’re excited to reach this agreement, which deepens our commitment to Hawai‘i and our long-standing support for its local businesses. Our approach has always centered on operating responsibly and creating new opportunities for community members, including the more than 9,000 jobs created and supported by our investments in Hawai‘i,” said David Levine, co-head of Americas acquisitions for Blackstone Real Estate. “We have a deep appreciation for what the Alexander & Baldwin management team has built, and we look forward to working together going forward.”
“Alexander & Baldwin has built an outstanding portfolio and we look forward to working with our partners and the Company to help continue its success,” said Caleb Cragle, Head of Strategic Investments, DivcoWest.
The Investor Group intends to invest over $100 million across the A&B portfolio to enhance the properties and reinforce their essential role in the communities they serve.
For the A&B transaction, BofA Securities is serving as A&B’s exclusive financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP and Cades Schutte LLP are serving as legal advisors. Joele Frank, Wilkinson Brimmer Katcher is serving as strategic communications advisor. Wells Fargo and Eastdil Secured are acting as Blackstone’s financial advisors. Simpson Thacher & Bartlett LLP and Carlsmith Ball LLP are serving as Blackstone’s legal counsel. Gibson, Dunn & Crutcher LLP is serving as DivcoWest’s legal counsel.
Earlier this year, Blackstone Real Estate Partners X completed its previously announced, $4 billion acquisition of all outstanding common shares of ROIC. Blackstone then combined ROIC with ShopCore Properties and EQ Office to form
.
