Lighthouse to Buy Prime Retail

The Lighthouse Group, Lakewood, N.J., is acquiring Prime Retail, a Baltimore-based retail real estate investment trust, for a total consideration of about $638 million, including the assumption of $523 million of debt.Under the terms of the acquisition agreement, the series A preferred stockholders of Prime Retail will receive $16.25 per share in cash; the series B preferred stockholders, $8.66 per share; and the holders of common stock, $0.18 per share. Prime said its board of directors, as well as a special committee made up of "disinterested members" of the board, have approved the merger agreement and are recommending that shareholders vote in favor. Prime will continue to operate out of Baltimore. David Lichtenstein, president and chief executive officer of Lighthouse, said the merger will "provide a solid platform for Lighthouse to further expand its real estate holdings into the retail arena," an area in which the company sees "great opportunity for the future."