The deal gives the two companies about 40 centers in seven states, as well as an office building and a few development projects in the pipeline. Most of the centers are in Arizona, California and Florida. Kimco will manage the properties.
The companies expect the deal to close during the fourth quarter. Price Legacy common shareholders will get $18.85 per share in the transaction. (The company's stock closed at $19 yesterday.)
"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," says Jack McGrory, chairman and CEO of the San Diego-based company, in a statement.The deal is the third DRA-Kimco venture. The other deals, each owning one center, closed during last year's fourth quarter and this year's second quarter.
New York City-based DRA is an investment advisory firm specializing in real estate fund management. It manages about $3 billion in assets.
Kimco, based here, is the largest open-air center-owner in North America, with operating interests in 699 properties. During the second quarter the landlord bought interests in six US centers for $92.5 million. The company is also expanding in Canada, where it owns interests in 41 centers, and Mexico, where it owns three properties and has deals in the works to build or buy seven more.
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