Kimco Unloads Shopping Centers, Repays Mortgage Debt
New Hyde Park-based REIT Kimco Realty Corp. completed the sale of 15 of its shopping centers in the first quarter of 2012 in what spokesman David Bujnicki told The Commercial Observer is part of the company’s “active asset recycling.”
A total of thirteen non-strategic properties were sold—1.2 million square feet of space that fetched $95.9 million. This included $1.3 million of mortgage debt that was repaid. An additional joint venture project was sold in Schaumberg, Ill. for $118 million, including the repayment of $82.5 million of mortgage debt. As well, another unencumbered 31,000-square-foot joint venture property was sold for $1.6 million. Kimco held a 50 percent interest in that shopping center.
“For the most part we laid out an investment strategy back in our investor day in September of 2010 where we came up with a list of non-strategic shopping centers that were pretty much outside of our core target markets,” Mr. Bujnicki said. “These properties primarily fell in that realm.”
He was quick to add, though, that Kimco had previously announced several purchases during the quarter as well. None of these purchases were of properties located in the New York tri-state area, nor were any of the properties sold.
Now, since the September 2010 investor day event Mr. Bujnicki referenced, the REIT has sold a total of 53 non-strategic shopping centers—a total of $289.3 million. In all, $41.6 million of mortgage debt has now been repaid.