The Real Deal New York

REIT Kite Realty buys into NY, NJ markets with $1.2B deal

February 10, 2014 02:35PM

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An outdoor shopping mall owned by Kite Realty

Delray Marketplace in Delray Beach, Florida, owned by Kite Realty

Indianapolis-based real estate investment trust Kite Realty Group Trust is planning to buy rival REIT Inland Diversified Real Estate for $1.2 billion in stock in the second or third quarter of this year, according to Reuters. The move will help the group enter the New York and New Jersey markets, among other states, a representative of Kite Realty told Reuters.

The deal is part of Kite’s new focus on larger retail centers, which are better for profit than small strip and enclosed malls. Outdoor centers that offer ample parking and a “downtown” setting have been the hallmark of Kite Realty in South Florida because they attract consumers. The company will continue in this push in the New York metropolitan area.

“The trend is to incorporate a tenant mix of retailers, restaurants and entertainment in an area accessible to neighborhoods,” Jason Samreny, vice president of leasing of Kite Realty Group, told The Real Deal previously.

Inland will merge with one of Kite Realty’s subsidiaries and shareholders will receive 1.707 of Kite shares, or $10.50 for each Inland share held, Reuters said. Kite Realty currently owns 66 properties in 12 states, the majority of which are retail. Over the weekend, American Realty announced that it had closed on its acquisition of REIT Cole Real Estate in a deal valued at $7 billion. [Reuters] – Angela Hunt

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