Big Shopping Centers (2004) Ltd. (TASE:BIG) and Kimco Realty Corporation (NYSE: KIM) have made their third joint purchase of shopping centers in the US. The two companies bought the full rights of an asset portfolio of five open shopping centers in California and Nevada for $30 million. Big's share of the deal is $15 million.
Big's wholly-owned US subsidiary bought 49.9% of the properties, and Kimco bought the rest. Prior to the deal, Kimco was a minority rights holder of the shopping centers and managed them.
Big provided its subsidiary with a loan for its share of the purchase price. Big's subsidiary and Kimco intend to obtain financing from a US institution, and the subsidiary will use the money to repay part of Big's loan to it.
Altogether, Big and Kimco have bought 22 open shopping centers with a total commercial area of 330,000 square meters in the US for $518 million.
Big's share price rose 0.6% in morning trading today to NIS 77, giving a market cap of NIS 888 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 27, 2010
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