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NEW HYDE PARK, NY-As part of its national public strategy, retail REIT Kimco Realty Corp. is continuing to dispose of its non-strategic assets. In the first quarter of 2012, the company has sold off 15 shopping centers for $215.4 million, including the repayment of $83.7 million of mortgage debt.
Out of those properties, 13 of the assets went for $95.9 million, including the repayment of $1.3 million of mortgage debt, totaling 1.2 million square feet. Generally, the properties were in locations outside of Kimco’s target metropolitan statistical areas, according to Kimco’s VP of investor relations and corporate communications David F. Bujnicki.
“We went through our portfolio and we identified a number of non-strategic shopping centers that we decided for a number of reasons, to dispose of them, primarily because they may have been in challenged markets, they may have had chronic vacancies, single-use, limited or low growth or just because we didn’t have the necessary scale of people in that geographic location,” he tells GlobeSt.com.
These transactions now bring the REIT’s total non-strategic shopping center sales to 53 properties totaling $289.3 million, including the repayment of $41.6 million of mortgage debt, since the company initiated the program in September 2010.
Additionally during the quarter, the company sold the Streets of Woodfield, a 713,000-square-foot property in Schaumburg, IL anchored by Dick’s Sporting Goods, for $118 million. Kimco held a 45% stake in the property, while the other 55% was held by joint venture partner Joseph Freed & Associates. The deal included the repayment of $82.5 million of mortgage debt.
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Also during Q1, the REIT sold an unencumbered 31,000-square-foot property joint venture property for $1.6 million in which Kimco held a 50% interest.
Bujnicki says the strategy falls in-line with the company’s continued goals to focus on primary markets and properties anchored by strong, credit-worthy tenants. “We decided to improve the quality of our portfolio and create a real active and robust asset recycling program, targeting core markets and MSAs that we were focused on,” Bujnicki adds. “We were committed to disposing and selling these non-strategic shopping centers and reinvesting those proceeds back into the better markets that we want to focus on, or where we already had a presence.”
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