Inland Diversified merging with Kite

GULF COAST — Large retail owner Inland Diversified Real Estate Trust Inc. has entered into a definitive agreement to merge with Indianapolis-based Kite Realty Group Trust.

Inland Diversified Real Estate Trust currently owns four shopping centers along the Gulf Coast, a 87,213-square-foot center at 8917-8935 N. 56th St., Temple Terrace; 99,853-square-foot Centre Point Commons in Bradenton; and 70,659-square-foot Village Walk and 255,394-square-foot Colonial Square in Fort Myers. Kite owns another 12 retail locations here as well, including seven retail centers in Naples.

Under the terms of the merger agreement, each outstanding share of Inland Diversified will be converted into a right to receive between 1.71 and 1.65 Kite common shares, based on Kite's stock price prior to the special meeting of Inland Diversified stockholders to approve the merger. Based on the $6.15 closing price for Kite's common shares as of Feb. 7, the exchange would equate to $10.50 per share of Inland Diversified. The deal values the Oak Brook, Ill., real estate investment trust at $2.5 billion, including the sale of the company's net-leased portfolio to Realty Income.

“This transaction achieves our goal of maximizing value and provides an opportunity for our stockholders to either remain part of the well capitalized combined company or liquidate their investment,” Barry Lazarus, president and chief operating officer at Inland Diversified, says in a press release.

The transaction has already been approved by a special committee of the board of directors of Inland Diversified and is expected to close during the second or third quarter. The merger still requires the approval by both Inland Diversified and the Kite stockholders.