$1.2 Billion U.S. Shopping Center Merger

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U.S.-based Kite Realty Group Trust, a community shopping center operator, announced it is purchasing Inland Diversified Real Estate Trust for approximately $1.2 billion in stock. 

The stock-for-stock merger has a transaction value of about $2.1 billion, according to a company announcement. The merger will included a combined portfolio of 131 properties totaling 20.3 million owned square feet across 26 states.

"The asset and tenant quality and strong demographic profile will be a great complement to our portfolio," John A. Kite, Kite Realty's chief executive, said in a statement. "With this transaction, we will be able to substantially increase the size and scale of our portfolio in our core markets and enter into attractive new markets."

With the deal, Kite Realty will enter markets including Westchester, New York, Bayonne, New Jersey, Las Vegas, Virginia Beach and Salt Lake City.

The deal has a combined enterprise value of approximately $3.9 billion, according to the company. The deal is expected to close in the third quarter of 2014. 

Last November, Kite Realty purchased a 10-property retail portfolio for about $307 million.