Real estate investment trust Washington Prime Group Inc. (WPG) has agreed to buy peer Glimcher Realty Trust (GRT) for about $2 billion in cash and stock. This deal is valued at about $4.3 billion including debt. The deal gives Washington Prime more malls, outlet and open-air shopping centers and an operating platform for its business, which is currently managed under an agreement with Simon that runs through May 2016. The combined company expects to increase income through higher occupancies and rents. The combined entity, to be known as Glimcher WP, will have about 68 million square feet of gross leasable area and a portfolio of 119 properties.
Under the terms of the transaction, Glimcher’s shareholders will receive $10.40 in cash and 0.1989 of a share in WPG stock at closing. The stock portion of the consideration is valued at $3.80.
As part of the transaction, Simon Property will acquire Jersey Gardens in Elizabeth, New Jersey, and University Park Village in Fort Worth, Texas, properties currently owned by Glimcher, for $1.09 billion in cash.