Kimco Realty and Weingarten Realty Investors announced last week that Kimco plans to purchase Weingarten for $3.87 billion. The result of the transaction will be a combined national portfolio that includes 559 open-air grocery-anchored shopping centers and mixed-use developments that encompass about 100 million square feet of gross leasable area (GLA). Both companies expect the transaction to close in the second half of this year, pending shareholder approval.
“This combination reflects our conviction in the grocery-anchored shopping center category… and provides last-mile locations that are more valuable than ever due to their hybrid role as both shopping center destinations and omnichannel fulfillment epicenters,” Kimco CEO Conor Flynn said in a statement. “It also gives us even greater density in the Sun Belt markets we are targeting…”
According to Kimco and Weingarten, the combined company’s core anchor tenant banners will account for about 19.3% of total annualized base rent, with no single tenant representing more than about 4%.
After the transaction closes, Kimco shareholders are expected to own about 71% of the company’s equity on a pro forma basis. Flynn is slated to lead the company as CEO, and the merged entity will retain the Kimco name.