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KIMCO REALTY LAUNCHES SUBSIDIARY TO HELP RETAILERS FILL VACANT SPACES

Kimco Realty Corp. is launching a subsidiary that will help retailers find replacement tenants for vacant stores with lease obligations. The formal launch of the venture, temporarily called Retailer Services, is expected when the company secures its first client.

With roughly 500 centers, Kimco Realty said it has access to a large field of potential retailer tenants, and is, therefore, capable of functioning as an agent to fill the empty spaces, according to Kimco officials. The service is not primarily aimed at filling empty store spaces in Kimco Realty’s own portfolio. It is targeted at large national retailers that are forced to close unprofitable store locations but must continue to pay rent for empty store space.

In other Kimco news, the company, which is the largest U.S. strip center developer, has agreed to form a joint venture with RioCan, Canada’s largest strip center developer, under which each will invest C$50 million to pursue three acquisition and development opportunities in Canada. The deal marks the first move by Kimco, New Hyde Park, N.Y., into Canada, which officials say will become a large part of its strategy in coming years.

“This is a first step in building a portfolio in Canada,” Kimco Chief Investment Officer David Henry said. “We’re intrigued about expanding in Canada for a number of reasons: The rents in Canada are still rising in many markets and retail properties tend to be stronger assets.”

According to the terms of the partnership, Toronto-based RioCan will present Kimco with prospective development or acquisition opportunities that Kimco can accept or reject.

TAUBMAN CENTERS OPENS $200M SHOPS AT WILLOW BEND

About 250,000 shoppers visited Taubman Centers’ $200 million Shops at Willow Bend, Plano, Texas, during its opening weekend in August. The company estimated that 100,000 customers came during the opening day festivities at the 1.5 million-square-foot regional mall. Four of the five anchors — a 150,000-square-foot Neiman Marcus, a 140,000-square-foot Lord & Taylor, a 250,000-square-foot Foley’s and a 250,000-square-foot Dillard’s — opened with the mall.

AMES FILES FOR BANKRUPTCY PROTECTION

Ames Department Stores, Rocky Hill, Conn., which in early August said it would close 47 of its 452 stores, has filed for voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code. The discount chain said its remaining stores will stay open while it reorganizes. Ames has received two debtor-in-possession financing agreements that will enable it to continue operating while it reorganizes. GE Capital has provided it with $700 million in financing and Kimco Realty Corp., New Hyde Park, N.Y., through subsidiary Kimco Funding, has provided $55 million. The Kimco credit line is a modification of an agreement between the two companies announced in early July and is secured by leasehold interests on certain Ames stores. The chain’s stores are located in the Northeast, Mid-Atlantic and Mid-West regions of the United States.