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Price is REIT for Kimco
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January 14, 1998: 8:29 a.m. ET
Kimco paying $535 million for Price REIT, assuming $300 million in debt
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NEW YORK (CNNfn) - Real estate investment trust Kimco Realty Corp. said Wednesday it is buying Price REIT in a stock deal worth $535 million.
Under the agreement, Kimco (KET) will buy all the outstanding shares of Price REIT for $45 per share, a premium of about $3 per share over Price's Tuesday closing price (RET).
Kimco also will assume all of Price's $300 million in debt. Assuming the transaction receives all the necessary approvals, the deal will create one of the nation's largest retail shopping center REITs, with a market capitalization of about $3 billion.
"Price REIT is a successful pioneer in the development of retail power centers anchored by large national tenants, which complements our historical focus on neighborhood and community shopping centers," Kimco CEO Milton Cooper said.
The acquisition of Price will expand Kimco's presence mainly in the West, including California, Arizona and Washington, and will add about 7.3 million square feet of property.
San Diego, Calif.-based Price typically has focused on buying and developing retail shopping centers. It currently has 37 properties with several other projects under development. Over the last year, it has acquired 14 shopping centers for a total of $225 million.
Kimco is headquartered in New Hyde Park, N.Y., and has interests in 330 properties in 37 states, primarily in Florida, Ohio, Pennsylvania and Illinois. Last year it added $276 million in properties.
The REITs expect the deal to be completed by the middle of 1998.
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