Real estate investment trust (REIT) Regency Centers Corp. (NASDAQ:REG) has agreed to acquire Urstadt Biddle Properties (NYSE:UBA)in an all-stock $1.4 billion deal.
The consideration under the definitive merger agreement also includes preferred sock and the assumption of debt. Further, the combined entity is anticipated to have a total enterprise value of about $16 billion.
Investors holding Class A and common shares of Urstadt Bidde will get 0.347 of new Regency shares for each share held by them and upon closing of the transaction, Regency investors will hold 93% of the combined entity.
The Boards of both companies have given approval to the move and now the combined portfolio will be made up of 481 properties spanning over 56 million square feet in gross leasable area.
The deal is expected to close in the second half of this year and is expected o be immediately accretive to the core operating earnings of Regency.
Overall, the Street has a $69.89 consensus price target on REG alongside a Moderate Buy consensus rating.
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