Regency Centers/Equity One deal is shaping up to be a landmark merger, creating the largest REIT in the grocery-anchored shopping center space. After the deal is closed as expected in 2017, the combined company will have a total market capitalization of $12 billion, easily moving it past current sector leader Kimco Realty Corp., whose market cap is about $11.1 billion.
Despite the positive attributes of the deal, however, the market should not expect to see a ramp-up in M&A activity in the sector. Due to very unique aspects that underpin acquisitions in the sector, REIT-to-REIT transactions are rare and very company specific, sources say.. . . more