Big Shopping Centers (2004) Ltd. (TASE:BIG) and Kimco Realty Corporation have bought 15 shopping centers in the US for $422 million. The company expects to close the purchase by the end of June.
Big will own 49.9% of the properties and Kimco will own 50.1%. Kimco already manages the shopping centers, and will continue to do so, in exchange for management fees.
The shopping centers bear $385 million in six-year non-recourse loans, which will be deducted from the purchase price. Big and Kimco will provide the remaining $37 million of equity, in nearly equal shares, for the purchase.
The 15 shopping centers have an aggregate space of 240,000 square meters and are 89.5% occupied. The properties are located in California, Nevada, Oregon, Washington, and Maryland. Annual rent amounts to $32 million.
Kimco is a REIT that owns and manages 1,470 retail properties in the US, Mexico, and Central and South America.
The two firms announced a joint venture about a month ago, based on the same proportion (49.9% Big, 50.1% Kimco), to buy shopping centers throughout the US. An initial investment of $68.8 million covered two properties bought by Kimco in the fourth quarter of 2009.
Big is controlled by chairman Yehuda Naftali and director Ron Naftali. Big's share price rose 0.4% by midday to NIS 82.10, giving a market cap of NIS 948 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 13, 2010
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