Kite Realty, Retail Properties of America to Merge
By Matt Grossman
Kite Realty Group Trust and Retail Properties of America Inc. plan to merge, creating a company with an enterprise value of roughly $7.5 billion, the two real-estate investment trusts said Monday.
Under the terms of the stock-for-stock deal, each Retail Properties share would get converted into 0.623 newly issued Kite shares. The deal would represent a 13% premium for Retail Properties based on Friday’s closing prices.
Kite and Retail properties will have a combined portfolio of 185 open-air shopping centers. Kite’s management team will lead the combined company, with John Kite as chief executive. The company will retain Kite’s headquarters in Indianapolis and trade on the New York Stock Exchange under KRG.
Mr. Kite said the merger would improve earnings while maintaining a strong balance sheet. The deal is expected to close in the fourth quarter of 2021.
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