Kimco Completes Sale of Nine-Property Retail Portfolio in Mexico
Sale furthers company’s strategic exit from Latin America
NEW HYDE PARK, N.Y.--(BUSINESS WIRE)--Kimco Realty Corp. (NYSE:KIM), North America’s largest publicly traded owner and operator of neighborhood and community shopping centers, today announced it has closed on the sale of a nine-property retail portfolio in Mexico to a joint venture between Macquarie Mexican REIT (MMREIT) (BMV:FIBRAMQ) and Grupo Frisa for a gross sales price of 2.9 billion Mexican pesos (US $222.0 million) including debt of 475.9 million Mexican pesos (US $36.3 million). Kimco’s pro-rata share of the sales price was approximately 2.0 billion Mexican pesos (US $153 million).
The portfolio, which comprised 2.1 million square feet, was approximately 90 percent occupied at the time of sale and, if certain occupancy and rental growth thresholds are met 18 months after closing, Kimco may earn an additional payment. The company expects to recognize a $20.0 million gain on sale, before any impact from currency, which will be excluded from the calculation of funds from operations.
This transaction represents a major part of the company’s simplification strategy that includes exiting Latin America and focusing on its portfolio in the U.S. and Canada. With the sale of these nine properties, Kimco’s remaining Latin America shopping center portfolio comprises 36 properties totaling 5.9 million square feet. The company is currently negotiating contracts for the sale of these remaining properties.
Kimco Realty Corp. (NYSE: KIM) is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that owns and operates North America’s largest publicly traded portfolio of neighborhood and community shopping centers. As of December 31, 2013, the company owned interests in 852 shopping centers comprising 125 million square feet of leasable space across 42 states, Puerto Rico, Canada, Mexico and South America. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for more than 50 years. For further information, please visit www.kimcorealty.com, the company’s blog at blog.kimcorealty.com, or follow Kimco on Twitter at www.twitter.com/kimcorealty.