Kimco Buying Price REIT for Stock, Debt

In a deal analysts said could set off a wave of consolidation among shopping center real estate investment trusts, Kimco Realty Corp. said it is buying Price REIT Inc. for $535 million in stock and the assumption of $300 million in debt. The deal would create a new retail shopping center REIT with a market capitalization of nearly $3 billion. Kimco, which owns and operates neighborhood shopping centers, said it would acquire all the outstanding shares of Price REIT in exchange for stock priced to at least $45 a share, or a total of $535 million. Kimco, based in New Hyde Park, N.Y., is the nation’s largest publicly traded owner and operator of neighborhood and community shopping centers, with real estate assets of $1.4 billion. Price, based in La Jolla, was spun off from discount retailer Price Co. in 1991. It has interests in 37 properties in 15 states. Price REIT shares added $1.69 to close at $43.88 on the New York Stock Exchange. Kimco slipped 19 cents to close at $34.31, also on the NYSE.