Phillips Edison Grocery Center REIT I has plans to acquire the real estate and asset management business of its sponsor and external adviser, Phillips Edison LP, in a stock-and-cash transaction valued at $1 billion.
The merger will create an internally managed, nontraded grocery-anchored shopping center REIT with an expected total enterprise value of $4 billion. The resulting enterprise will own a high-quality, nationally diversified portfolio of 230 shopping centers in 32 states.
Phillips Edison Grocery Center REIT I will take over management of Phillips Edison Grocery Center REIT II, which owns 78 properties in 24 states totaling 9.6 million square feet and future properties owned by the newly launched Phillips Edison Grocery Center REIT III.
The transaction is expected to close during the fourth quarter of 2017.