INDIANAPOLIS—Kite Realty Group Trust has just completed its $2.1 billion merger with Inland Diversified Real Estate Trust, Inc. As reported in GlobeSt.com, the transaction was approved by the shareholders of Kite and the stockholders of Inland Diversified on June 24. The combined company will continue to trade under Kite’s existing ticker symbol, KRG, on the New York Stock Exchange. As a result of the merger, each former share of Inland Diversified has been converted into 1.707 Kite Realty common shares.
“We are extremely excited to close the merger with Inland Diversified, which represents a transformative event in the history of our company,” says John A. Kite, Kite Realty’s chairman and chief executive officer. “This transaction creates a $4 billion company and we expect to realize numerous financial benefits from the merger, including a substantial increase in cash flow and liquidity, a lower cost of capital, and a strengthened balance sheet.”
Kite adds that Inland Diversified has “a high-quality portfolio with strong demographic profiles in dynamic new markets,” and this will “provide profitable redevelopment opportunities and the ability to enhance our relationships with national, regional, and local tenants.”
Kite Realty now has a board of trustees with nine members, six originally from Kite Realty and three picked by Inland. The six continuing Kite trustees are John A. Kite, William E. Bindley, Victor J. Coleman, Christie B. Kelly, David R. O’Reilly and Barton R. Peterson. And Inland has chosen Lee A. Daniels, Gerald W. Grupe and Charles H. Wurtzebach, all of whom were directors of Inland Diversified. Dr. Richard A. Cosier and Gerald L. Moss, former trustees of Kite Realty, have just retired from the board.
John A. Kite, Thomas K. McGowan, Kite’s president and chief operating officer, and Daniel R. Sink, executive vice president and chief financial officer will continue serving in the same roles.
Bank of America Merrill Lynch and Barclays acted as financial advisors to Kite Realty, and Hogan Lovells US LLP was the firm’s legal counsel for the merger. Wells Fargo Securities and Alston & Bird LLP advised Inland.
The combined company owns interests in a portfolio of 133 operating, development and redevelopment properties totaling about 21-million-square-feet across 26 states.