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BOSTON-The real estate investment trust last week celebrated its 40th birthday, but the nation’s oldest REIT will forever be 39 years old. That’s because Bradley Real Estate Inc. has been absorbed by Heritage Property Investment Trust, a private REIT that is owned largely by the New England Teamsters pension fund and the Prudential Insurance Co. The combined assets give Heritage 151 neighborhood and community shopping centers in 27 states, with a total portfolio of nearly 24 million sf.

As part of the agreement, Heritage Chairman Thomas Predergast has replaced Bradley CEO Thomas D’Arcy. Although its name will cease to exist, the remnants of Bradley will have a homecoming of sorts, given that the Illinois-based REIT was created in the Hub in 1961 and remained there until 1996 when D’Arcy decided it made sense to move to the mid-west to be near the bulk of its assets, which were primarily retail.

Heritage initially announced its intentions to acquire Bradley in May for $1.1 billion. Under terms of the final agreement, holders of Bradley’s common stock will receive $22 per share for all outstanding shares of Bradley. The holders of the erstwhile REIT’s Series A convertible preferred stock will receive approximately $22.45 per share for all outstanding shares. The merger was financed via $100 million in equity financing from Prudential Real Estate Investors, while Prudential Mortgage Capital Co. provided a $235 million mortgage loan. Fleet National Bank added $425 million via an unsecured credit facility.

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