(Source: Business Wire)Kimco Realty Corporation announced today that it has completed the purchase of the remaining 85 percent interest in PL Retail LLC, an entity comprising 21 shopping centers that the company manages and in which the company previously held a 15 percent interest. The price for the 85% interest of approximately $175 million was based on an enterprise price of $825 million, less the assumption of approximately $564 million in non-recourse mortgage debt and $50 million of perpetual preferred stock. The company funded the acquisition from its existing credit facility.

"This is a new beginning," stated Milton Cooper, Kimco's chairman and chief executive officer. "These are high-quality assets in strong markets which are currently 94 percent leased. Costco is the largest tenant in this portfolio and this transaction continues Kimco's position as Costco's largest landlord. Kimco will continue to pursue purchases of shopping centers to leverage our existing infrastructure and enhance shareholder value."

The 21 shopping centers comprising approximately 5.2 million square feet of gross leasable area (GLA) are located in California (8 assets; 27% of GLA), Florida (6 assets; 42% of GLA), Phoenix AZ metro area (2 assets; 7.3% of GLA), metro NJ (2), Long Island, NY (1), metro Washington DC (1) and Greenville, SC (1). Costco represents more than 10 percent of the GLA and Home Depot, Ross, the TJX stores, Wal-Mart, Lowe's, Petsmart, BJ's Wholesale and Best Buy together constitute an additional 25 percent of GLA.

Kimco previously held a 15 percent interest in the entity and purchased the remaining 85 percent interest from a fund managed by DRA Advisors LLC. The $825 million enterprise price includes approximately $805 million for existing assets, which represents a 7.6 percent cap rate on underwritten net operating income (NOI) of approximately $61 million annually, or approximately $156 per square foot, plus $20 million for the development rights at Pentagon Centre.

About Kimco

Kimco Realty Corporation, a real estate investment trust (REIT), owns and operates North America's largest portfolio of neighborhood and community shopping centers. As of September 30, 2009, the company owned interests in 1,462 retail properties comprising 153 million square feet of leasable space across 45 states, Puerto Rico, Canada, Mexico and South America. Publicly traded on the NYSE under the symbol KIM and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for 50 years.