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COMMERCIAL REAL ESTATE

Strip-Mall Owner Bradley to Sell Out

May 16, 2000|From Bloomberg News

Bradley Real Estate Inc., unable to compete nationally with other strip shopping center owners, agreed to sell out to Heritage Property Investors Inc. for $1.12 billion in cash and assumed debt.

Closely held Heritage will pay $22 a share in cash for each of Bradley's shares and common share equivalents, or a total of $516 million. The price is a 19% premium to Bradley's closing share price of $18.50 on Friday. Heritage, Bradley said, will also assume or retire about $605 million in debt and preferred stock.

The purchase will almost triple Boston-based Heritage's holdings to 151 strip shopping centers in 27 states with 24 million square feet of space. Both companies are real estate investment trusts (REIT). Illinois-based Bradley, formed in 1961, bills itself as the oldest REIT in existence.

Bradley's 15 million square feet of space was located mainly in the Midwest. Bradley shares rose $2.75 Monday to close at $21.25 on the New York Stock Exchange.

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