Kite Realty buys Inland Diversified REIT for $1.2 billion

Publish Date: February 12, 2014

Topics: inland, kite realty, reit, transaction


Indianapolis–based REIT Kite Realty Trust will acquire the Oak Brook, Ill.–based private REIT Inland Diversified Real Estate Trust Inc. for about $1.2 billion.

The deal will double Kite’s portfolio to about 20 million square feet, with 131 properties in 26 states. The REIT, which has a market value of about $836 million, will gain entry to new markets such as Las Vegas, Salt Lake City and Westchester County, New York.

“Inland Diversified has assembled a very well-located, high-quality portfolio,” said Kite Realty chairman and CEO John A. Kite, who will serve as CEO of the combined company, in a press release. “The asset and tenant quality and strong demographic profile will be a great complement to our portfolio.”

As previously disclosed, Inland Diversified has entered into a contract to sell its single tenant net lease portfolio to Realty Income Corporation for $503 million and this transaction is expected to close prior to the closing of the Kite merger. Additionally, after the closing of the proposed Kite merger, Kite Realty expects to dispose of three multi-family assets owned by Inland Diversified as well as Inland Diversified’s securities portfolio. The proceeds from these sales will be used to further repay debt and delever the balance sheet, according to Kite.

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