Indianapolis-based Kite Realty Group Trust (NYSE: KRG) has formed a joint venture with United Kingdom-based TH Real Estate. Kite says the partnership was established to acquire high-quality retail properties with a fund managed by the London company.
Kite says it has contributed three properties valued nearly $100 million to the joint venture in exchange for a 20 percent ownership interest and $89 million in net proceeds. The real estate investment trust will be responsible for the day-to-day management of the properties will will receive property management and leasing fees.
The properties involved include retail centers in New Jersey, Texas, and Florida that total 418,000 square feet.
"We are excited to be working with TH Real Estate in this endeavor," said John Kite, chief executive officer of Kite Realty Group Trust. "Our two teams work very well together, and we hope to find additional opportunities to acquire desirable properties to expand our relationship."
Kite says the company will use the net proceeds from the deal to pay down its debt.