Inland Real Estate to be Acquired by DRA Advisors for $2.3 Billion

by Katie Sloan

Oak Brook, Ill. — Inland Real Estate Corp. (NYSE: IRC) has entered into a definitive agreement to be acquired by real estate funds managed by New York City-based DRA Advisors LLC (DRA) for approximately $2.3 billion, including the assumption of existing debt.

IRC is a publicly traded REIT focused on owning and operating open-air neighborhood, community and power shopping centers located in the central and southeastern United States.

As of Sept. 30, IRC owned interests in 135 shopping centers (or retail assets) containing approximately 15 million square feet of leasable space.

Under the terms of the agreement, DRA-managed funds will acquire all issued and outstanding common stock of IRC for $10.60 per share in cash. Following the completion of the acquisition, Oak Brook-based IRC will become a privately held real estate investment trust.

“The board has been focused on the options available to address the long-term discount at which IRC’s shares have traded versus private market valuations and its shopping center REIT peers,” says Thomas D’Arcy, non-executive chairman of IRC. “The board unanimously believes this all-cash offer is the best course of action to address this valuation gap and provide our stockholders with strong relative value for their investment.”

The cash acquisition consideration of $10.60 per share represents an approximate 6.6 percent premium over IRC’s closing stock price of $9.94 on Dec. 14, and an approximate 11.5 percent and 15.9 percent premium over the volume-weighted average closing prices of IRC common stock over the 30-day and 60-day periods ending Dec. 14, respectively.

IRC’s board has unanimously approved the agreement and acquisition. Completion of the transaction, which is expected to occur in the first half of 2016, is contingent upon closing conditions, including the approval of IRC’s stockholders.

BMO Capital Markets Corp. and Silver Portal Capital acted as financial advisors to IRC, and Proskauer Rose LLP acted as legal counsel. Blank Rome LLP acted as legal counsel to DRA.

DRA has obtained a commitment letter for debt financing from Wells Fargo Bank, as lender and administrative agent, and Wells Fargo Securities, as sole lead arranger and bookkeeper.

DRA is a registered SEC investment advisor with $6.8 billion of assets under management, headquartered in New York with offices in San Francisco and Miami.

— Scott Reid

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