Blackstone set to dispose of US shopping centers for $512m

Blackstone Group LP (BX) have agreed to the sale of a majority share in 39 shopping centers in the US to Kimco Realty Corp (KIM).

Kimco will purchase the two-third interest held by Blackstone in the properties based in Maryland, California, Florida, Texas, Virginia and New York, covering 5.6 million square feet.  The company confirmed that the transaction value is $925m, inclusive of debt.

The sale by Blackstone comes as it commences marketing of a new global real estate fund.  The private equity firm from New York took the second-largest shopping center landlord in the US, Brixmor Property Group Inc (BRX) public during October 2013.  Kimco has been simplifying its holdings by selling off some of its lower-quality assets, thus reducing its joint ventures.

Blackstone purchased the interest in the Kimco venture during June 2013 for around $733m, inclusive of debt, from the UBS Wealth Management North American Property Fund.  The financial details have not been made public but there is speculation that the firm invested around $260m of equity.  Blackstone has declined any comment.