Market Overview

Excel Trust Enters Into Agreement to Be Acquired by Blackstone for $15.85 per Share


Excel Trust, Inc. (NYSE: EXL) today announced that it has entered into a definitive agreement with Blackstone Property Partners L.P., under which Blackstone will acquire all outstanding shares of common stock of Excel Trust for $15.85 per share in an all-cash transaction valued at approximately $2 billion.

The transaction has been unanimously approved by Excel Trust's Board of Directors and represents a premium of nearly 15% over the Company's closing stock price on April 9, 2015. In addition to the common stock dividend of $0.18 per share payable on April 15, 2015, Excel Trust intends to pay an additional common stock dividend in July 2015, but, under the terms of the agreement, not for any quarter thereafter.

"We believe this is an excellent outcome for our stockholders," stated Gary Sabin, Chairman and CEO of Excel Trust. "Appetite for high-quality retail real estate is strong with cap rates and REIT stock multiples approaching historic levels and we did not believe the market accurately reflected the value of the assets. This led the Board to conclude it was time to more fully assess the value of our portfolio. After reviewing our options, we were pleased to have a group with Blackstone's reputation step forward with this offer."

Blackstone will be making this investment through Blackstone Property Partners ("BPP"), its Core+ real estate investment unit. BPP targets substantially stabilized office, retail, industrial, and multifamily assets located in primary U.S. markets.

Nadeem Meghji, co-head of US real estate acquisitions for Blackstone, added, "Excel is a terrific company with great long-term potential. This will be a milestone transaction for our Core+ real estate investment strategy."

Completion of the transaction, which is currently expected to occur in the second half of 2015, is contingent upon customary closing conditions, including the approval of Excel Trust's stockholders, who will vote on the transaction at a special meeting on a date to be announced. The transaction is not contingent on receipt of financing by Blackstone.

In connection with the closing of the transaction, the parties intend that Excel Trust L.P.'s $75,000,000 of 4.40% Senior Series A Notes due 2020 and its $25,000,000 of 5.19% Senior Series B Notes due 2023 will be repaid. Excel Trust L.P.'s $250,000,000 of 4.625% Senior Notes due 2024 are intended to remain outstanding following the closing.

Morgan Stanley & Co. LLC acted as financial advisor to Excel Trust and Latham & Watkins LLP is acting as Excel Trust's legal advisor. Eastdil Secured / Wells Fargo Securities, LLC is acting as Blackstone's lead financial advisor, with Barclays also acting as a financial advisor in connection with the transaction. Simpson Thacher & Bartlett LLP is acting as legal advisor to Blackstone.

First Quarter 2015 Financial Results
Excel Trust will release financial results for its first quarter 2015 on April 29, 2015 after market close. In light of today's announcement, the Company will not hold a conference call for analysts and investors to discuss financial results, and the previously announced call for April 30, 2015 has been cancelled.

About Excel Trust
Excel Trust, Inc. is a retail focused real estate investment trust (REIT) that primarily targets community shopping centers, power shopping centers, and grocery anchored neighborhood centers. The Company has elected to be treated as a REIT for U.S. federal income tax purposes. Excel Trust trades publicly on the NYSE under the symbol "EXL". For more information on Excel Trust, please visit

Posted-In: M&A News Press Releases


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