Developer Acquires Flower Mart Site in SOMA

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 6^th 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.