In a significant move for Hawaii’s real estate landscape, a joint venture involving MW Group, funds affiliated with Blackstone Real Estate, and DivcoWest has agreed to acquire Alexander & Baldwin (A&B) in an all-cash deal valued at approximately $2.3 billion, including debt. This transaction will transition A&B, a prominent Hawaii-based commercial real estate owner, operator, and developer, into a private company.
Key Takeaways
- A joint venture led by MW Group, Blackstone Real Estate, and DivcoWest will acquire Alexander & Baldwin.
- The deal is valued at approximately $2.3 billion, including outstanding debt.
- A&B will transition from a public to a private company.
- The acquisition is expected to enhance A&B’s capacity to serve its tenants and communities.
Deal Details And Strategic Implications
The agreement marks a new chapter for Alexander & Baldwin, a company with a 155-year history intertwined with Hawaii’s growth. As the largest owner of grocery-anchored shopping centers in Hawaii, A&B’s extensive portfolio encompasses approximately four million square feet of commercial space. This includes 21 retail centers, 14 industrial assets, and four office properties, in addition to significant ground lease interests.
Lance Parker, president and CEO of A&B, expressed optimism about the transition, stating, "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." This suggests a strategic focus on leveraging the new ownership’s resources to further develop and manage its existing assets and potentially explore new opportunities within Hawaii.
Advisors And Legal Counsel
Several prominent firms are involved in facilitating this major transaction. BofA Securities served as A&B’s exclusive financial advisor, with Skadden, Arps, Slate, Meagher & Flom LLP and Cades Schutte LLP providing legal counsel. Joele Frank, Wilkinson Brimmer Katcher acted as the strategic communications advisor for A&B.
On the acquiring side, Wells Fargo and Eastdil Secured acted as financial advisors to the Blackstone-led venture. Legal counsel for Blackstone was provided by Simpson Thacher & Bartlett LLP and Carlsmith Ball LLP, while Gibson, Dunn & Crutcher LLP served as legal counsel for DivcoWest.