Regency Centers to acquire rival REIT Urstadt Biddle Properties for $1.4bn
Regency Centers Corporation, a real estate investment trust (REIT) listed on Nasdaq, has entered into an agreement to acquire Urstadt Biddle Properties, a REIT listed on the New York Stock Exchange (NYSE), in a deal valued at approximately $1.4 billion.
This transaction will be an all-stock deal and includes the assumption of debt and preferred stock.
Regency Centers Corporation’s portfolio of properties features grocers, restaurants, service providers, and top-tier retailers, fostering connections with local communities and customers.
Urstadt Biddle Properties currently owns or holds equity interests in 77 properties, totaling around 5.3 million square feet of space.
Upon completion of the acquisition, the combined real estate investment trust is expected to have a pro forma equity market capitalization of approximately $11 billion and a total enterprise value of approximately $16 billion.
As per the terms of the agreement, Urstadt Biddle Properties’ shareholders will exchange each of their shares for 0.347 shares of Regency Centers Corporation. This implies a consideration of roughly $20.4 per share, based on Regency Centers Corporation’s closing share price on 17 May 2023.
Following the closing of the deal, Regency Centers Corporation and Urstadt Biddle Properties shareholders will hold approximately 93% and 7% of the combined company, respectively. The boards of directors of both Regency Centers Corporation and Urstadt Biddle Properties have approved the transaction.
Willing L. Biddle — Urstadt Biddle Properties President and CEO said: “Regency has a long, successful history of being a sector and industry leader in the ownership and operation of high-quality shopping centers around the country, with one of the best-regarded teams in the REIT industry.
“I have no doubt that our portfolio will be in great hands under Regency leadership, and as a future Regency shareholder I look forward to the scale and platform benefits that the combination of our two companies will provide.”
The combined portfolio will consist of 481 properties, encompassing over 56 million square feet of gross leasable area.
The deal is expected to expand the presence of the combined company in excellent suburban trade areas, with a focus on top-tier grocery-anchored shopping centers. It also strengthens Regency Centers Corporation’s geographic diversification and preserves a robust lineup of tenants.
Lisa Palmer — Regency Centers Corporation President and CEO said: “The portfolio that Urstadt Biddle has carefully assembled over more than 50 years offers a highly aligned demographic and merchandising profile to Regency.
“Both companies have a successful track record of owning and operating best-in-class grocery-anchored neighborhood and community centers in premier suburban trade areas, and we look forward to the synergies and growth opportunities that this transaction will offer to the combined shareholder base.”
The transaction is anticipated to be finalized in the late third quarter or early fourth quarter of 2023, subject to the approval of Urstadt Biddle Properties’ and Regency Centers Corporation’s shareholders, as well as the fulfillment of other customary closing conditions.