Gazit Globe鈥檚 US retail property subsidiary is to merge with Regency Centers.
The New York-listed firm鈥檚 Equity One subsidiary will merge with Regency Centers to create the largest US shopping centre REIT, with a combined equity market cap of around $11.7bn (鈧�10.8bn) and an enterprise value of around $15.6bn.
Gazit-Globe, which specialises in supermarket-anchored shopping centres in major urban markets, will be the merged entity鈥檚 largest shareholder.
Chaim Katzman, chairman at Gazit-Globe and Equity One, said: 鈥淭his is a major deal that will create the highest quality and largest shopping centre company in the US.鈥�
Equity One has grown for two and a half decades from a single asset worth $4.5m to an implied market capitalisation of $4.6bn, according to Katzman.
鈥淭he merged company will be the largest of its kind in North America,鈥� he said.
Katzman, who has until now served as chairman at Equity One, will serve as vice-chairman of the merged company.
Two independent directors from Equity One鈥檚 board will also be added to the board of Regency, which owns 307 assets.
The transaction is expected to close early next year.
