NEW HYDE PARK, NY-PL Retail, a joint venture comprised of Kimco Realty Corp. and DRA Advisors, has completed its $1.2-billion acquisition of Price Legacy Corp.'s 7.7-million-sf retail portfolio. The transaction involves 33 neighborhood and community shopping centers across the nation with tenants such as Costco, Wal-Mart and Home Depot. The deal is the third DRA-Kimco venture.
Under the terms of the merger, holders of Price Legacy's common stock will receive $18.85 per share in cash plus a prorated common dividend from Oct. 1 through the closing of the merger. The total merger consideration to be received by holders of Price Legacy's common stock will equal $19.097 per share. "We firmly believe that this transaction is in the best interest of Price Legacy's stockholders and that it achieves our stated goal to maximize value for our stockholders," said Jack McGrory, chairman and CEO of the San Diego-based company Price Legacy, when the deal was first announced.
According to Kimco officials, this acquisition continues to build on the firm's operating platform and property management business. Kimco will manage the properties on behalf of the joint venture and earn property management fees and leasing commissions.
During the current quarter, Kimco continued to grow its portfolio. The company will acquire the 525,856-sf Factoria Mall in Bellevue, WA for approximately $102 million. Kimco will acquire the property in a joint venture and retain a 50% interest in the property. For the year, Kimco has invested more than $2 billion in real estate on behalf of its shareholders and partners.
In other third-quarter deals, Kimco, through its joint venture with GE Real Estate, acquired Rio Norte Shopping Center located in Laredo, TX for $23.6 million. Kimco has contracted to acquire Curlew Crossing in Clearwater, FL. This Home Depot anchored shopping center is 207,000 sf and will be purchased for approximately $17.8 million. Kimco also acquired centers in Maryland, Illinois, Florida as well as an 11-property drug store-anchored portfolio in the New York Metropolitan area for $84.5 million.
Kimco now owns equity interests in a total of 62 properties in Canada and has acquired interests in seven properties in Mexico. The company has approved an additional 10 development projects aggregating approximately 3.2 million sf of leasable space in Mexico. Company officials feel Mexico's improving economy, dense population and shortage of retail space has created an opportunity for Kimco to expand rapidly throughout the country. In fact, Kimco anticipates having more than $380 million invested in the country by the end of 2005.
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