The real estate investment trust Kite Realty Group Trust and RPAI (Retail Properties of America) announced a $7.5 billion merger in which RPAI would merge into a subsidiary of KRG.
The KRG shareholders are expected to own approximately 40% of the combined company’s equity and RPAI shareholders are expected to own approximately 60%.
The Chairman and Chief Executive Officer of Kite Realty Group, John A. Kite, said:
“This merger marks a momentous day for KRG and our shareholders,”“The combination of our firms brings together two high-quality, complementary portfolios. The combined company will have durable cash flows, operational upside and external value creation opportunities.
“The financial benefits of the transaction include immediate earnings accretion, while maintaining a strong balance sheet. This merger further demonstrates our conviction in open-air retail centers as essential shopping destinations and last mile fulfilment centers. We are energised about the future of this combined company.”
About Kite Realty
It is Trust which is vertically-integrated real estate investment trust (REIT) engaged predominantly in the ownership and operation, development redevelopment and acquisition, of high-quality neighbourhood and community shopping centers in select markets in the United States.
The company’s strategy is to maximise the cash flow of operating properties.
About RPAI
RPAI (Retail Properties of America) is a company which provides real estate investment services The company also owns and operates high quality, strategically located open-air shopping centers, including properties with a mixed-use component. RPAI has keenly positioned itself to benefit from the shift in retail.
