INDIANAPOLIS—Kite Realty Group Trust has justcompleted its $2.1 billion merger with Inland DiversifiedReal Estate Trust, Inc. As reported in GlobeSt.com,the transaction was approved by the shareholders of Kite and thestockholders of Inland Diversified on June 24. Thecombined company will continue to trade under Kite's existingticker symbol, KRG, on the New York StockExchange. As a result of the merger, each former share ofInland Diversified has been converted into 1.707 Kite Realty commonshares.

|

“We are extremely excited to close the merger with InlandDiversified, which represents a transformative event in the historyof our company,” says John A. Kite, Kite Realty'schairman and chief executive officer. “This transaction creates a$4 billion company and we expect to realize numerous financialbenefits from the merger, including a substantial increase in cashflow and liquidity, a lower cost of capital, and a strengthenedbalance sheet.”

|

Kite adds that Inland Diversified has “a high-quality portfoliowith strong demographic profiles in dynamic new markets,” and thiswill “provide profitable redevelopment opportunities and theability to enhance our relationships with national, regional, andlocal tenants.”

|

Kite Realty now has a board of trustees with nine members, sixoriginally from Kite Realty and three picked by Inland. The sixcontinuing Kite trustees are John A. Kite,William E. Bindley, Victor J.Coleman, Christie B. Kelly, DavidR. O'Reilly and Barton R. Peterson. AndInland has chosen Lee A. Daniels, GeraldW. Grupe and Charles H. Wurtzebach, allof whom were directors of Inland Diversified. Dr. RichardA. Cosier and Gerald L. Moss, formertrustees of Kite Realty, have just retired from the board.

|

John A. Kite, Thomas K.McGowan, Kite's president and chief operating officer, andDaniel R. Sink, executive vice president and chieffinancial officer will continue serving in the same roles.

|

Bank of America Merrill Lynch andBarclays acted as financial advisors to KiteRealty, and Hogan Lovells US LLP was the firm'slegal counsel for the merger. Wells FargoSecurities and Alston & Bird LLPadvised Inland.

|

The combined company owns interests in a portfolio of 133operating, development and redevelopment properties totaling about21-million-square-feet across 26 states.

|

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Brian J. Rogal

Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.