Kimco Buying Pan Pacific

Kimco Realty Corp., New Hyde Park, N.Y., is acquiring San Diego-based Pan Pacific Retail Properties, another retail real estate investment trust, for a total price of about $4 billion.The consideration includes the assumption of about $1.1 billion in Pan Pacific's outstanding debt, Kimco reported. Kimco will acquire all the outstanding shares of Pan Pacific for $70 per share in cash. The REIT may also choose to issue up to $10 per share of the merger consideration in the form of Kimco common stock. Kimco said it has received financing commitments totaling up to $3 billion, which it may use to fund all or part of the total merger consideration. Pan Pacific's portfolio totals 138 properties, encompassing about 22.6 million square feet, according to Kimco. The REIT said it expects to target a substantial number of the properties for its "strategic co-investment" programs. "We feel very good about the quality and long-term prospects for the neighborhood shopping centers in Pan Pacific's portfolio," said Kimco's chairman and chief executive, Milton Cooper. The merger has been approved by both companies' boards of directors. The companies can be found online at http://www.kimcorealty.com and http://www.pprp.com.