Certain Ares Real Estate funds agreed to acquire Whitestone REIT, a Houston-based owner of open-air neighbourhood shopping centres, for US$19.00 per share in cash in a deal valued at about US$1.7bn, the companies announced on 9 April.
Why Ares Real Estate funds is buying Whitestone REIT
Ares said the deal reflected its conviction in necessity-based retail in supply-constrained metropolitan areas of Arizona and Texas. Whitestone's chief executive credited its strategy of high-return smaller spaces let to a diversified tenant base.
Deal terms and financing
The all-cash price covered all common shares and operating partnership units and represented a 12.2% premium to the closing price on 8 April and 26.5% to the unaffected price before a 5 March Reuters report on a possible sale. Whitestone's board approved the deal unanimously, and it carried no financing condition; Citigroup and Morgan Stanley provided financing to Ares.
Regulatory approvals and timing
The merger required approval from Whitestone shareholders, who backed it at a special meeting on 9 July 2026. Ares announced completion on 14 July 2026, after which Whitestone's shares ceased trading on the NYSE.
Market context
At the end of March Whitestone owned 56 convenience-focused retail properties across Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio; on completion Ares put the portfolio at 54 properties totalling about 4.8 million sq ft. Whitestone had hired advisers to explore a sale before the agreement, according to a Reuters report cited in the announcement.
