Blackstone venture to buy Hawaii property owner for US$1.5 billion

[LOS ANGELES] A joint venture between Blackstone’s real estate business, MW Group and DivcoWest struck a deal to purchase a Hawaiian commercial property owner Alexander & Baldwin (A&B) in a US$1.5 billion all-cash deal.

The buyers agreed to pay US$21.20 a share for the company, according to a statement on Monday (Dec 8). Including debt, the enterprise value of the transaction, which is expected to be completed in the first quarter, is about US$2.3 billion.

A&B, which traces its roots back 155 years to sugar growers on Maui, owns roughly four million square feet (372,000 square metres) of commercial real estate, including shopping centres with a grocery store tenant. The company will retain its headquarters in Honolulu.

Blackstone already has ties to Hawaii. The firm helped develop the Hilton Hawaiian Village Wakiki Beach Resort. The company also previously owned the Turtle Bay Resort before striking a deal in 2024 to sell that property to Host Hotels & Resorts.

“We are excited to reach this agreement, which deepens our commitment to Hawaii and our long-standing support for its local businesses,” said David Levine, co-head of Americas acquisitions for Blackstone Real Estate. BLOOMBERG