Blackstone extends bet on grocery stores in Texas property deal
The firm is paying US$440 million for a portfolio that includes properties in Dallas, Houston and San Antonio
[NEW YORK] Blackstone is acquiring a collection of Texas retail properties, increasing its wager on real estate anchored by grocery stores.
The alternative asset manager is paying US$440 million for a portfolio that includes properties in Dallas, Houston and San Antonio, and spans roughly 2 million square feet, a person familiar with the matter said.
Most of the properties include grocery tenants such as H-E-B and Kroger, added the person, who requested anonymity to discuss the transaction.
Adam Leslie, managing director at Blackstone Real Estate, said: “Grocery-anchored retail is one of our high-conviction themes given the strong fundamentals across the sector. We are thrilled to acquire these high-quality assets across the largest cities in Texas.”
A Blackstone representative declined to comment on the deal price or other specifics of the transaction, including the identity of the seller.
Grocery-anchored properties are enjoying popularity with real estate investors, in part because a slowdown in new construction has stoked competition among tenants, keeping occupancy rates and rents high.
The stores are prized as stable tenants during periods when consumers pull back on discretionary spending.
Blackstone, among the world’s largest property owners, has been betting big on grocery-anchored shopping centres.
In February, it completed a US$4 billion deal to take Retail Opportunity Investments private, which specialised in the properties.
More recently, it partnered on a US$1.5 billion acquisition of a major owner of grocery real estate in Hawaii. BLOOMBERG
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