Kimco Realty Corp.
) and its joint venture partner - American Industries - decided
to vend its interests in several trusts that hold Mexican
industrial properties portfolio. The move is part of Kimco's
attempts to divest its non-core Mexican assets, in order to
strengthen its overall portfolio.
The deal value was about $600 million, which comprises $294
million worth beneficial trusts and mortgage debt worth $306
million. The transaction is anticipated to close by the third
quarter of 2013, subject to customary conditions (including
The retail real estate investment trust (REIT) agreed to sell
the proposed assets to Terrafina - a Mexican REIT. Terrafina's
portfolio consists primarily of strategically positioned
warehouses and other light manufacturing properties throughout
the central, Bajío and northern regions of Mexico.
Notably, Kimco and American Industries have about 50.7% and
49.3% interests, respectively in the Mexican portfolio, which
comprises 84 industrial properties spanning around 11 million
square feet. The non-retail properties are occupied by several
multi-national tenants largely for distribution, light assembly,
research and development, and industrial production.
Of late, Kimco has been actively divesting its interests in
Mexican non-core properties to improve its core business
operations. Earlier this week, the company sold 9 assets of its
Mexican shopping center portfolio to a local real estate operator
for 3.35 billion Mexican pesos ($274 million), which include 573
million Mexican pesos ($47 million) of mortgage debt. The company
had a 47.6% interest in the assets, which spanned 2.6 million
square feet and were 91% leased.
Kimco currently carries a Zacks Rank #3 (Hold). Better
performing retail REITs include
Cedar Shopping Centers, Inc.
Acadia Realty Trust
), all of which carry a Zacks Rank #2 (Buy).
ACADIA RLTY TR (AKR): Free Stock Analysis
AMREIT INC (AMRE): Free Stock Analysis Report
CEDAR SHOPN CTR (CDR): Free Stock Analysis
KIMCO REALTY CO (KIM): Free Stock Analysis
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