Kite completes $1.2B Inland acquisition

Locally based Kite Realty Group Trust said Tuesday that it has completed its $1.2 billion acquisition of Illinois-based Inland Diversified Real Estate Trust Inc.

Under the all-stock transaction, each share of Inland was converted into 1.7 Kite shares.

Kite CEO John A. Kite said in a statement that the deal “represents a transformative event in the history of our company. This transaction creates a $4 billion company and provides a number of significant financial and operational benefits.”

Analysts say the deal, announced Feb. 10, will swell Kite’s roster of properties from 74 to more than 130, giving the retail real estate company a higher profile, greater operating efficiencies and more clout in negotiatons with tenants.

“Importantly, Evercore Group analyst Benjamin Yang wrote in a February report, Kite “will be harder to ignore in the investment community given its larger size.”

Negotiations to buy Inland dragged on more than a year, Securities and Exchange Commission filings show, a span when Inland nearly sealed a deal with another suitor.

In trading early Tuesday afternoon, Kite Realty shares were fetching $6.14, up 2 cents on the day.

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