SAN FRANCISCO—Kilroy Realty Corporation agreed to acquired all the outstanding shares of San Francisco Flowers Growers’ Association, in order to obtain a 1.9 acre development parcel in SOMA for $27 million.
San Francisco Flower Growers (SFFGA) is a privately owned entity whose only material asset as of the closing of the proposed merger is the land site. The 1.9 acre site of the San Francisco Flower Mart is located at the corner of Brannan Street and 6th Street in Central SOMA, a prime San Francisco area between Showplace Square and the South Financial district. The acquisition will be financed by KRC directly issuing approximately $22.0 million of its common stock to SFFGA shareholders and the immediate repayment of approximately $4.6 million of outstanding debt and transaction related expenses.
KRC’s acquisition of SFFGA is contingent upon the adoption of the merger agreement and the approval of the principal terms of the merger by SFFGA’s shareholders holding a majority of the outstanding shares of SFFGA common stock. It is anticipated that the proposed transaction will close by the end of the year.
With more than 65 years’ experience owning, developing, acquiring and managing real estate assets in West Coast real estate markets, Los Angeles-based Kilroy Realty Corporation (KRC), a publicly traded real estate investment trust. SFFGA is a California corporation headquartered in San Francisco that was incorporated in 1923 as a cooperative organized by local flower and fern growers. Its primary business is to own and operate a portion of the real estate on which the San Francisco Flower Mart is situated.