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Kimco to buy real estate rival for $2.9 billion

Kimco Realty Corp., a real estate investment trust focused on shopping centers, on Monday said it plans to acquire Pan Pacific Retail Properties Inc. for $2.9 billion in cash and stock.
/ Source: The Associated Press

Kimco Realty Corp., a real estate investment trust focused on shopping centers, on Monday said it plans to acquire Pan Pacific Retail Properties Inc. for $2.9 billion in cash and stock.

San Diego-based Pan Pacific holds a portfolio of 138 retail properties totaling roughly 22.6 million square feet.

Under the terms of the deal, Kimco will acquire all the outstanding shares of Pan Pacific for $70 per share. Kimco may choose to issue up to $10 per share of the total purchase price in common stock.

Kimco, which is based in New Hyde Park, New York, will also assume about $1.1 billion in Pan Pacific debt as part of the transaction. The company said it has secured $3 billion in financing commitments, which it may use to fund the acquisition.