Kimco Realty Corporation, a real estate investment trust (REIT) headquartered in New Hyde Park, New York, announced via the company's Q4 2012 Kimco Realty Corp Earnings Conference Call this week that Blackstone Group would be buying a majority interest in a 40-location portfolio or shopping centers that is co-owned by Kimco and UBS AB. According to the call, UBS will sell its controlling interest to Blackstone for $1.1 billion. The private-equity company will pay roughly $274 million in cash and assume $463 million of debt for a two-thirds stake in the properties, which are concentrated in the metropolitan areas of New York, Washington, D.C., San Francisco and San Diego, reported the Wall Street Journal.
The centers are "very high quality assets," David Henry, Kimco's president and chief executive, said during the call to discuss Kimco's fourth-quarter financial results with investors. "During the quarter, Blackstone signed a definitive agreement with UBS Wealth Management North American Property Fund to purchase their equity interest in two large Kimco-managed UBS retail joint ventures, encompassing 40 high-quality shopping centers containing approximately 5.6 million square feet," Henry, said during the call.
The 5.7 million square-foot portfolio was 96.1% leased at the end of 2012, with about $692 million in debt on the properties, according to a filing (KIM) by Kimco. Kimco owns stakes in 896 shopping centers globally.
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