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Kite Realty, RPAI Agree to $7.5B Merger
Kite Realty Group Trust (KRG) and Retail Properties of America (RPAI) said Monday that they had agreed to merge, with KRG continuing as the surviving public company. The stock-for-stock transaction creates a company that is expected to have an equity market capitalization of approximately $4.6 billion and a total enterprise value of approximately $7.5 billion.
The merger will create an operating portfolio of 185 open-air shopping centers spanning approximately 32 million square feet of owned gross leasable area. These properties are primarily located in “warmer and cheaper” metro markets, with 70% of centers having a grocery component.
“The combination of our firms brings together two high-quality, complementary portfolios,” said John A. Kite, KRG’s chairman and CEO. “This merger further demonstrates our conviction in open-air retail centers as essential shopping destinations and last-mile fulfillment centers.”
At RPAI, CEO Steve P. Grimes said, “After many years of curating both of our portfolios, combining them into one company will allow us to generate the best results for both sets of shareholders over the long term. Our increased scale will benefit the business both operationally and financially.”
Pictured: KRG’s 12th Street Plaza in Vero Beach, FL.
- ◦Sale/Acquisition
