In line with its strategy of acquiring premium properties
across high-income and high-barrier U.S. markets,
Regency Centers Corporation
) completed the buyout of 80% stake in a shopping center
portfolio in Fairfield, CT for $150 million.
This retail real estate investment trust (REIT) acquired the
majority stake of this portfolio through a joint venture with
Kleban Properties, a regional developer and manager of commercial
real estate assets.
The mixed-use shopping center portfolio comprises three
properties - The Brick Walk, Fairfield Center and Black Rock
Shopping Center - positioned in prosperous areas in Fairfield.
The assets totaling about 315,000 square feet are 100% leased.
These properties boast a tenant base of numerous industry leading
companies such as
Wells Fargo & Co.
The Gap, Inc.
L Brands, Inc.
). This acquisition bodes well for its long-term growth given the
location of assets and tenant roster.
Lately, the company has been active in adding high quality
assets in its portfolio. Earlier this month, Regency disclosed
the buyout of a neighborhood shopping center - Shops at Mira
Vista - in Austin, Texas.
We believe that these efforts will efficiently expand
Regency's portfolio in infill locations with high occupancy
levels and strong tenant sales and offer the company a
considerable upside potential going forward.
Regency is slated to report the first-quarter 2014 results on
May 7, after the closing bell. The Zacks Consensus Estimate for
the quarter is currently pegged at 65 cents. The company has
reported an average earnings surprise of 3.56% in the trailing
four quarters of 2013.
Regency currently carries a Zacks Rank #3 (Hold).
GAP INC (GPS): Free Stock Analysis Report
L BRANDS INC (LB): Free Stock Analysis Report
REGENCY CTRS CP (REG): Free Stock Analysis
WELLS FARGO-NEW (WFC): Free Stock Analysis
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