Kimco Realty, Pan Pacific Retail Properties to Merge
San Diego, Kimco Realty Corp. and Pan Pacific Retail Properties announced that the two companies entered into a definitive merger agreement Monday. The agreement, which has been unanimously approved by both companies’ boards of directors, will merge Pan Pacific’s portfolio of 138 properties with Kimco’s vast holdings.
According to Stuart Tanz, president and CEO of Pan Pacific, “We believe that this offer by the nation’s largest publicly-traded owner of shopping centers is in the best interest of our stakeholders and represents an attractive price that fairly reflects the value of Pan Pacific.”
Kimco expects to target a substantial number of the Pan Pacific properties for its strategic co-investment programs. Under the terms of the agreement, Kimco will acquire all of the outstanding shares of Pan Pacific for a total merger consideration of $70 per share.
The transaction has a total value of approximately $4.0 billion, including Pan Pacific’s outstanding debt totaling approximately $1.1 billion and $2.9 billion in equity value. Kimco received financing commitments totaling up to $3.0 billion, which it may use to fund all or a portion of the total merger consideration.
The transaction is expected to close during the fourth quarter of 2006.
Home Depot May Report Comp-Store Sales Again
Los Angeles, Home Depot Inc.’s CEO said the chain may return to reporting comp-store sales, just weeks after it announced it would stop the quarterly reports. In an interview with CNBC on Thursday, chairman and CEO Bob Nardelli said the company would make any announcement about reinstating comp-store sales reports in its quarterly financial report. In May, Home Depot announced it would stop reporting comp-store sales on a quarterly basis.
Chain Store Sales Up 2.7%
New York City, U.S. chain stores sales increased, but were still weak in the fifth and final week of June, as storms and rising floodwaters in the northeast caused temporary store closings, according to a Redbook Research report released Wednesday. Sales at big-box retailers rose 2.7% on a year-over-year basis for the week ended July 1, following a 3.4% rise the prior week. Sales at U.S. retailers in the last week of June rose 1.8% compared to the same time period in May.
Flooding caused by the heavy rain prevented some customers from shopping in malls, Redbook said.