Inland Real Estate to Be Bought for $1.07 Billion in Cash

Updated on
  • DRA Advisors agrees to acquire U.S. shopping-center landlord
  • Price of $10.60 a share is 6.6% more than Monday's close

Inland Real Estate Corp., a U.S. shopping-center landlord, agreed to be acquired by funds managed by DRA Advisors LLC for about $1.07 billion in cash.

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.