Regency Centers Corporation (NASDAQ:REG) has announced the acquisition of Urstadt Biddle Properties Inc (NYSE:UBA) in an all-stock deal valued at $1.4 billion. The transaction will help Regency expand its footprint in suburban trade areas, offering a highly aligned demographic and merchandising profile.
Under the terms of the deal, Urstadt stockholders will receive 0.347 of a newly-issued REG share for each Class A Common (UBA) and Common (UBP) share they own, representing a premium of 21% to Urstadt’s last close.
The acquisition is expected to be immediately accretive to Regency’s funds from operations and net asset value per share. It is also expected to generate cost savings of approximately $10 million annually.
The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2020.