Washington Prime to Buy Glimcher Realty for $2 Billion

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Washington Prime Group Inc. (WPG), a U.S.
shopping-center landlord spun off this year from Simon Property
Group Inc., concluded to buy Glimcher Realty Trust (GRT) for about $2
billion to emanate a diversified sell skill owner.

Glimcher stockholders will accept $10.40 in money and
0.1989 of a share of Washington Prime for any Glimcher share,
the companies pronounced now in a statement. Based on yesterday’s
closing prices, a transaction values Columbus, Ohio-based
Glimcher during $14.07 a share, a 33 percent premium.

The understanding gives Washington Prime some-more malls, opening and
open-air selling centers and an handling height for its
business, that is now managed underneath an agreement with
Simon that runs by May 2016. The total association expects
to boost income by aloft occupancies and rents.

“This adds a really high peculiarity brew of resources to our
portfolio,” Mark Ordan, arch executive officer of Bethesda,
Maryland-based Washington Prime, pronounced now on a discussion call
with analysts. “This puts us in good shape.”

The transaction is valued during about $4.3 billion including
debt, a companies said. The new entity, to be famous as WP
Glimcher, will have about 68 million block feet (6.3 million
square meters) of sum leasable space during 119 U.S. properties.

Ordan will be authority of WP Glimcher, that will be based
in Columbus. Glimcher Realty Chairman and CEO Michael Glimcher
will be CEO of a total company.

Share Gain

Glimcher jumped 30 percent to $13.75, a biggest gain
since Mar 2009 and top cost in 6 and a half years.
Washington Prime fell 6.6 percent to $17.24.

“The new entity has a higher-quality portfolio and a solid
balance sheet,” R.J. Milligan, an researcher during Raymond James
Associates Inc. in St. Petersburg, Florida, pronounced in a telephone
interview. “It’s a good cost for Glimcher and it’s going to
enable a new association to continue to acquire sell properties
in a United States.”

Glimcher was founded in 1959 by Michael Glimcher’s father,
Herbert, as Glimcher Co., a developer of frame centers and
single-tenant buildings, according to a company’s website.
Over a years, a association altered strategies and, under
Michael Glimcher’s leadership, sole lower-quality properties and
bought and grown higher-end selling centers and open-air
malls to boost growth.

Simon Buys

As partial of a Washington Prime deal, Simon Property (SPG), the
largest U.S. genuine estate investment trust, will acquire Jersey
Gardens in Elizabeth, New Jersey, and University Park Village in
Fort Worth, Texas — properties now owned by Glimcher —
for $1.09 billion in cash. Simon, formed in Indianapolis, spun
off Washington Prime in May to concentration on a informal malls and
outlet business.

Washington Prime, that has a marketplace value of about $2.7
billion, indispensable to sell properties including Jersey Gardens to
afford a Glimcher purchase, Ordan said.

“If we could’ve afforded it, we would’ve kept it,” he
said on a discussion call.

The total association might find to buy some-more properties where
tenant sales are reduce on a per-square-foot basement than during malls
owned by Simon and other top-tier landlords, pronounced Jeffrey Langbaum, a Bloomberg Intelligence analyst.

“They might wish to grow to be a widespread player,” he
said. When Simon spun off a company, “they clearly envisioned
that there would be expansion opportunities for Washington Prime.”

The squeeze of Glimcher is scheduled for execution in the
first entertain of subsequent year. Citigroup Inc. is Washington Prime’s
financial adviser, while GreenOak Real Estate LP and Morgan
Stanley represented Glimcher.

The merger will be “slightly accretive,” Ordan said
on a discussion call, but giving sum of a expected
earnings impact.

To hit a reporters on this story:
Brian Louis in Chicago at
blouis1@bloomberg.net;
Prashant Gopal in Boston at
pgopal2@bloomberg.net

To hit a editors obliged for this story:
Kara Wetzel at
kwetzel@bloomberg.net
Daniel Taub, Christine Maurus

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