Beleaguered REIT Konover Property Trust has finally sold after years of speculation. New Hyde Park, NY.-based Kimco Realty and New York-based Prometheus Southeast Retail (an affiliate of Paris-based Lazard) have formed a joint venture to acquire Konover for $303 million, or $2.10 per share.
The deal, which represents a cap rate of 10.9%, gives Kimco a 45% stake in the new joint venture. Kimco will contribute $35.5 million in cash and will take over management and leasing of the 4.8 million-sq.-ft. Konover portfolio, which includes 37 centers in 7 Southeastern states.
"Although the deal size is relatively small, it again demonstrates Kimco’s opportunistic dealmaking ability," said Salomon Smith Barney analyst Jonathon Litt in a written report on the transaction yesterday.
Details as to when the deal will be finalized were not released.