Inland Real Estate to Be Bought for $1.07 Billion in CashBy
DRA Advisors agrees to acquire U.S. shopping-center landlord
Price of $10.60 a share is 6.6% more than Monday's close
DRA Advisors will pay $10.60 a share for the Oak Brook, Illinois-based real estate investment trust, the companies said in a statement on Tuesday. That’s 6.6 percent more than Inland Real Estate’s closing share price on Monday. After the deal -- valued at $2.3 billion, including the assumption of debt -- Inland Real Estate will become a closely held REIT.
“The board has been focused on the options available to address the long-term discount at which the company’s shares have traded versus private market valuations and its shopping center REIT peers,” Thomas P. D’Arcy, Inland Real Estate’s non-executive chairman, said in the statement. “This all-cash offer is the best course of action to address this valuation gap.”
Inland Real Estate jumped 7 percent to close at $10.64. The shares had fallen 9.2 percent this year through Monday, compared with a 3.5 percent drop in the Bloomberg index of shopping-center REITs.
The companies expect the transaction to close in the first half of 2016. Most of Inland Real Estate’s shopping centers are located in central and southeastern U.S. The buyer, DRA, is a New York-based investment adviser with $6.8 billion of assets under management, according to the statement.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- Apple Is Secretly Developing Its Own Screens for the First Time
- Stocks Slump as Facebook Hits Tech; Bonds Recover: Markets Wrap
- From a $126 Million Bonus to Jail: The Fall of a Star Trader
- Hong Kong's Richest Woman Loses Half Her Wealth on Stock Plunge
- Facebook Plunges as Pressure Mounts on Zuckerberg Over Data