HONOLULU — A joint venture formed by locally based MW Group Ltd. and funds affiliated with Blackstone Real Estate and DivcoWest has entered into a definite merger agreement with Alexander & Baldwin Inc., a Honolulu-based owner-operator of shopping centers and other commercial real estate properties. The deal is valued at $2.3 billion, inclusive of outstanding debt, and would take Alexander & Baldwin private.
The joint venture plans to acquire all outstanding shares of Alexander & Baldwin for $21.20 per share in an all-cash transaction. The company’s stock price closed last week at $15.22 per share, giving the acquisition price a nearly 40 percent premium.
Alexander & Baldwin is the largest owner of grocery-anchored shopping centers in Hawaii. The firm’s overall portfolio spans approximately 4 million square feet and includes 21 retail centers, 14 industrial assets and four office properties, as well as fee interests in 146 acres of ground lease assets.
Upon closing of the deal, which is scheduled for the first quarter of 2026, Alexander & Baldwin will become a privately held company but will retain its Honolulu headquarters and maintain its name and brand. The new investment group has announced it will invest $100 million into Alexander & Baldwin’s existing real estate portfolio.
“For 155 years, Alexander & Baldwin has grown alongside Hawaii, shaped by the people, values and communities that define these islands,” says Lance Parker, president and CEO of Alexander & Baldwin. “Today, we are taking an important step toward our long-term vision as stewards of Hawaii’s premier commercial real estate. As a private company supported by the deep real estate expertise and experience of our new ownership group, [we] will have greater capacity to serve its tenants and communities.”
The board of directors at Alexander & Baldwin has unanimously approved the merger. The advisory team for Alexander & Baldwin included BofA Securities (finance); Skadden, Arps, Slate, Meagher & Flom LLP and Cades Schutte LLP (legal); and Joele Frank of Wilkinson Brimmer Katcher (strategic communications).
Wells Fargo and Eastdil Secured are acting as Blackstone’s financial advisors, and Simpson Thacher & Bartlett LLP and Carlsmith Ball LLP are serving as the company’s legal counsel. Gibson, Dunn & Crutcher LLP is serving as DivcoWest’s legal counsel.
MW Group is based in Honolulu and has an investment strategy that focuses on acquisitions in Hawaii, namely the Oahu and Maui islands. The privately held firm has $1 billion of assets under management, including shopping centers, self-storage facilities, seniors housing, industrial and office real estate.
New York City-based Blackstone was founded in 1991 and is currently the largest owner of commercial real estate globally, including Hawaiian properties such as the Grand Wailea, The Ritz-Carlton Maui and Pearlridge Center, the second largest shopping center in the state. The firm oversees $320 billion of investment capital under management. Blackstone’s stock price closed on Monday, Dec. 8 at $151.37 per share, down from $185.35 a year ago, a more than 18 percent decline.
DivcoWest was founded in 1993 and is headquartered in San Francisco. The company and its predecessor have acquired approximately 61 million square feet of office, life sciences, industrial, retail and multifamily properties, primarily in the United States.
— John Nelson