Big news echoing across the islands today as Alexander & Baldwin, Inc. (A&B), a cornerstone of Hawaiʻi’s commercial real estate landscape, announced a definitive merger agreement set to take the company private. This landmark transaction, valued at approximately $2.3 billion including outstanding debt, will see a joint venture formed by MW Group, funds affiliated with Blackstone Real Estate, and DivcoWest acquire all outstanding A&B common shares for a substantial $21.20 per share in cash.
For shareholders, this means a significant return, representing an impressive 40.0% premium to the closing price on December 8, 2025. It’s a clear signal of the immense value and potential the investor group sees in A&B’s extensive portfolio.
A Legacy Deeply Rooted in Hawaiʻi
For 155 years, A&B has been more than just a real estate company; it has been a partner in Hawaiʻi’s growth, deeply intertwined with its people, values, and communities. As the largest owner of high-quality, grocery-anchored shopping centers in the state, A&B’s properties are integral to the daily lives of residents. Its portfolio boasts approximately 4.0 million square feet of commercial space, including 21 retail centers, 14 industrial assets, and four office properties, alongside fee interests in 146 acres of ground lease assets.
Lance Parker, President and CEO of A&B, reflected on this transition: “Today, we are taking an important step toward our long-term vision for A&B as stewards of Hawai’i’s premier commercial real estate. As a private company supported by the deep real estate expertise and experience of our new ownership group, A&B will have greater capacity to serve its tenants and communities.”
Strengthening for the Future
The move to private ownership is heralded as a strategic step to enhance A&B’s ability to serve its stakeholders. Eric Yeaman, Chairman of the A&B Board, emphasized, “The Board is confident that today’s news is in the best interests of all of A&B’s stakeholders. It delivers a substantial cash premium for shareholders and long-term benefits for our valued employees, tenants and communities.”
The Investor Group brings a wealth of experience and a shared commitment to Hawaiʻi. Stephen Metter, CEO at MW Group, a Hawaiʻi-grown company itself, expressed his enthusiasm: “We look forward to supporting the Company’s legacy and magnifying our collective impact on the communities we serve.”
Blackstone Real Estate, with a history of responsible ownership in Hawaiʻi including iconic hospitality and retail properties, reinforces this commitment. David Levine, Co-Head of Americas Acquisitions for Blackstone Real Estate, noted, “Our approach has always centered on operating responsibly and creating new opportunities for community members, including the more than 9,000 jobs created and supported by our investments in Hawai’i.” Caleb Cragle, Head of Strategic Investments, DivcoWest, added his confidence in A&B’s outstanding portfolio and future success.
Commitment to Continuity and Community
Crucially, the Investor Group is aligned with principles that ensure A&B’s legacy and local focus will continue to thrive:
- Maintaining A&B’s Strong Local Focus: The company will retain its name, brand, and Honolulu headquarters.
- Continued Leadership From Local Team: A&B will continue to be led by its Hawaiʻi-based team, committed to strengthening the relationships and community connections that have driven its success.
This new chapter promises to further A&B’s vision for building a better Hawaiʻi, ensuring that its properties continue to support the daily lives of residents and its role as a steadfast partner for the islands remains unwavering.
Source: Original Article
