Kite Realty Group Trust and Retail Properties of America make $7.5b strategic merger

Kite Realty Group Trust and Retail Properties of America have entered into a definitive merger agreement under which RPAI would merge into a subsidiary of KRG, with KRG continuing as the surviving public company.

The strategic transaction joins two high-quality portfolios with complementary geographic footprints, creating a top-five shopping center REIT by enterprise value. The combined company is expected to have an equity market capitalization of approximately $4.6 billion and a total enterprise value of approximately $7.5 billion upon the closing of the transaction, assuming a KRG share price of $20.83, which was the closing price on July 16, 2021. This immediately accretive transaction, paired with a strong balance sheet and significant value creation opportunities, is expected to provide a runway to increase long-term value for shareholders.

The merger will create an operating portfolio of 185 open-air shopping centers comprised of approximately 32 million square