Jericho, New York-based Kimco Realty Corp., operator of open-air, grocery-anchored shopping centers and mixed-use assets, and Houston-based Weingarten Realty Investors, Sun Belt shopping center owner, manager and developer, have entered a merger agreement, with Kimco continuing as the surviving public company.
The merger will create a national operating portfolio of 559 open-air grocery-anchored shopping centers and mixed-use assets comprising approximately 100 million square feet of gross leasable area. These properties are primarily concentrated in the top major metropolitan markets in the United States.
“This business combination is highly strategic, creating a stronger platform that is even more capable of delivering long-term growth and value creation,” said Conor Flynn, Kimco’s chief executive officer, in a statement. “Not only will the merged company and its shareholders enjoy a larger, higher quality, more diversified portfolio with significant embedded growth opportunities, the transaction also reduces the combined company’s leverage, creating a stronger financial profile.”
“Combining these highly complementary platforms is a win-win for shareholders of both companies,” said Andrew Alexander, chairman, president and chief executive officer of Weingarten, in a statement. “After examining the deal from every angle, it became increasingly clear that the potential of the integrated business is much greater than the sum of its parts.”