Jacksonville-based Regency Centers is buying New York real estate investment trust Equity One. According to a statement from Regency, the acquisition was unanimously approved by the boards of both companies and will create a REIT with a $15.6 billion total market capitalization. The combined company will own 429 properties encompassing more than 57 million sqf of retail space. The sale agreement will see Equity One stock converted into 0.45 shares of Regency stock. Regency shareholders will own approximately 62 percent of the combined company, with the deal slated for completion in the first or second quarter of 2017.
Regency will be the surviving corporate entity, with its headquarters staying in Jacksonville. Martin E. “Hap” Stein, Jr., chairman and CEO of Regency will remain in his current role, as will Regency’s CFO, vice president of development and vice president of operations. Regency Centers (NYSE:REG) owns and operates more than 300 grocery-anchored retail centers and has a $7.4 billion market value. Equity One (NYSE:EQY) has 122 properties and a $4.1 billion market value. The buyout will make Regency the largest firm by equity value in the shopping center index.
“Shareholders of both companies are poised to benefit from an expanded presence in top metro areas, a higher organic growth profile, expanded development and redevelopment program, and greater tenant diversity,” said Martin E. “Hap” Stein, Jr., chairman and CEO of Regency “Through this transaction we are creating the nation’s preeminent shopping center REIT with excellent embedded growth potential.”
