Ares to take Whitestone REIT private in $1.7bn all-cash transaction

Funds managed by Ares Management have agreed to acquire Whitestone REIT in a deal valuing the US-listed shopping centre owner at approximately $1.7bn, marking another take-private transaction in the retail real estate sector, according top a report by Reuters.

Under the terms of the agreement, Ares will purchase all outstanding shares and operating partnership units for $19 in cash, representing a premium of just over 12% to the company’s most recent closing price.

The transaction, which has received unanimous backing from Whitestone’s board, is expected to complete in the third quarter of 2026, subject to shareholder approval and customary closing conditions.

Whitestone’s share price moved sharply higher following the announcement, reaching record levels in early trading, while Ares’ stock edged lower.

The acquisition follows a period of heightened interest in the company, with several private equity firms, including Blackstone and TPG, previously exploring potential bids amid growing investor scrutiny of Whitestone’s strategy and governance.

Activist pressure has also been a factor in recent months, with Emmett Investment Management pushing for board changes and raising concerns over capital allocation, contributing to momentum behind a potential sale.

Whitestone owns and operates a portfolio of convenience-focused retail centres concentrated in high-growth Sunbelt markets, including Texas and Arizona—areas that continue to attract private capital targeting necessity-based retail assets.