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SYDNEY - Australia's Centro Properties Group and Centro Retail Trust have agreed to buy New Plan Excel Realty Trust for about US$3.4 billion ($4.85 billion) in cash, accelerating Centro's push into the United States.
This is Centro Properties' third US purchase and it said in a statement that directors of New Plan have unanimously recommended the offer. Last year, Centro Property concluded the purchases of Karmont and Heritage real estate investment trusts.
The latest deal values New Plan at US$33.15 per share, a 13 per cent premium over its Tuesday closing price of US$29.34 on the New York Stock Exchange.
New Plan valued the transaction at US$6.2 billion including assumed debt and preferred stock.
New Plan expects the transaction to close in the second quarter, subject to customary closing conditions.
The company's portfolio includes 467 properties, including 453 shopping centres and 14 other real estate assets.
The US$3.4 billion value is based on New Plan's reported shares outstanding as of February 21.
Centro Retail is a subsidiary of Centro Properties and shares in both companies were placed on a trading halt yesterday.
- REUTERS
