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Kite Realty Merges Retail Property With $ 7.5 Billion Transaction

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Reuters

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July 20, 2021

Kite Realty Group Trust announced on Monday that it would acquire rival Retail Property of America Inc. for approximately $ 2.8 billion to establish one of the top five shopping center real estate investment trusts in the United States.

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Retail property shares will be converted to 0.6230 shares of newly issued kite realty in all equity transactions. This is an asking price of $ 12.98 per share, which means a premium of about 13% of the closing price of retail properties on Friday.

According to Kite Realty, the merged company is expected to have a market capitalization of approximately $ 4.6 billion and a corporate value of approximately $ 7.5 billion.

The combination also creates a portfolio of 185 outdoor shopping centers with a total leasable area of ​​approximately 32 million square feet.

Retail Properties will be integrated into a subsidiary of Kite Realty, and Kite Realty will continue to be the surviving company after the transaction closes in the fourth quarter of 2021.

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Kite Realty Merges Retail Property With $ 7.5 Billion Transaction

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