The merger will add Salt Lake City to Kite's list of markets, via the Draper Crossing center in Utah.

INDIANAPOLIS—Kite Realty Group Trust and Inland Diversified Real Estate Trust, which announced a $1-2-billion merger in February, are in the latter stages of making the union a reality. The two REITs said Friday that the final exchange ratio had been determined, with each share of Inland Diversified common stock converted into 1.707 shares of Kite Realty common stock upon the merger’s closing.

A special meeting of Inland Diversified’s shareholders is slated for this coming Tuesday at the REIT’s Oak Brook, IL headquarters. The Inland Diversified board has recommended shareholder approval, and the company says shareholder votes thus far have been 94% in approval of the merger.

Following the merger, which is expected to occur on or around July 1, the combined company will retain the name Kite Realty Group Trust. It will continue to trade on the New York Stock Exchange under the symbol KRG.

The merger will double Kite’s retail portfolio from 10.1 million owned square feet to 20.3 million owned square feet. The Inland Diversified portfolio of 57 properties was 95.3% leased as of this past Dec. 31. The acquisition will open some new markets for Kite, including Westchester County in New York State; Bayonne, NJ; Las Vegas; Salt Lake City; and Virginia Beach, VA.

 “Inland Diversified has assembled a very well located, high quality portfolio,” Kite Realty’s chairman and CEO John A. Kite, who will serve as chairman and CEO of the combined company, said in February. “The asset and tenant quality and strong demographic profile will be a great complement to our portfolio.” 

Kite said in February that after the merger closed, it expected to dispose of three multifamily assets owned by Inland Diversified as well as Inland Diversified’s securities portfolio. Proceeds from these sales will be used to further repay debt and delever the balance sheet.