Ares Management announced on Apr. 10 that it has agreed to acquire Whitestone Real Estate Investment Trust in an all-cash transaction valued at $1.7 billion, according to a filing with the U.S. Securities and Exchange Commission.
The acquisition will take Houston-based Whitestone private and merge it with Ares real estate funds, following unanimous approval from Whitestone’s board of directors. The deal is expected to close in the third quarter and represents a 26.5 percent premium over Whitestone’s unaffected share price.
Whitestone owns a portfolio of 56 properties across Texas and Arizona, focusing on suburban retail centers anchored by grocery stores, fitness businesses, and service-oriented tenants. In North Texas alone, the company manages more than one million square feet of retail space, including Las Colinas Village in Irving, Headquarters Village in Plano, and Eldorado Plaza in McKinney. Its most recent acquisition was Ashford Village shopping center in west Houston.
The move comes after months of speculation about Whitestone’s future as activist investors pushed for a sale due to its public market discount. Other private equity firms such as Blackstone and TPG had also expressed interest earlier this year while MCB Real Estate made several unsuccessful bids for the company.
Dave Holeman, CEO of Whitestone REIT, said his company’s strategy focuses on “connection and convenience” within local communities.
Industry observers say Ares’ decision is driven by demographic trends such as population growth and limited land supply in major metro areas like Dallas-Fort Worth and Phoenix rather than seeking a turnaround opportunity for Whitestone.
