Sprouts Farmers Market announced that its first Pennsylvania store, under construction in South Philadelphia, will open before the end of the year. The 32,000 square foot store will be part of Kimco Realty's Lincoln Square development that includes Target, PetSmart and approximately 350 apartments.
It had been reported since last spring that Sprouts was coming to South Philadelphia and the vacant Macy's space at the Moorestown Mall in New Jersey. However, a spokesperson for PREIT, the mall's owner, said the company is moving forward with another grocer for the site.
Sprouts operates 280 stores in 15 states.
Showing posts with label Kimco. Show all posts
Showing posts with label Kimco. Show all posts
Sunday, April 29, 2018
Tuesday, December 22, 2015
Plans in place again for Albertsons IPO
Albertsons (Acme, Albertsons, Safeway, Vons, Jewel-Osco et al) filed an amended stock prospectus for an initial public offering late last month in hopes of raising between $1.5 and $2 billion. The company had originally planned to hold the offering in October but called off the IPO due to market volatility.
The prospectus is seeking a sale of 65.3 million shares at a price between $23 and $26 per share, along with an over-allotment of 9.8 million shares. Albertsons says it plans to use the proceeds to pay down debt.
Albertsons is owned by a consortium led by Cerberus Capital Management, and includes real estate companies Kimco Realty, Klaff Realty, Lubert-Adler and Schottenstein Stores. This consortium will indirectly own approximately 83% of Albertsons common stock following the offering.
The prospectus is seeking a sale of 65.3 million shares at a price between $23 and $26 per share, along with an over-allotment of 9.8 million shares. Albertsons says it plans to use the proceeds to pay down debt.
Albertsons is owned by a consortium led by Cerberus Capital Management, and includes real estate companies Kimco Realty, Klaff Realty, Lubert-Adler and Schottenstein Stores. This consortium will indirectly own approximately 83% of Albertsons common stock following the offering.
Friday, December 27, 2013
"Banner Churn" of 2013 may continue into 2014
Supermarket News published an informative year-end story about the many changes that took place this year in the food retail industry. They called it a year of "banner churn."
The article starts by pointing out that the "big three" made major moves. Kroger agreed to buy Harris Teeter, Safeway sold its Canada division and announced that its closing its Dominick's chain in Chicago (only a year after closing all but one of the company's Genuardi's stores), and Supervalu sold 877 stores - including the Albertsons and Acme chains - to an investment group led by Cerberus that includes Kimco and Philadelphia's Lubert Adler.
Regarding the Supervalu deal, Albertsons Chief Executive Robert Miller told Supermarket News that "we're in this for the long haul," and that "we have no plans to sell any of the brands."
Whether Miller is being truthful, or simply truthful for now, is yet to be seen. There are many that don't believe the company will hold on to Acme - or at least the banner's many underperforming stores - for very long.
As for the industry's future, Irene Marks and David Mell of Wells Fargo believe "consolidation and capital markets activity will remain robust well into 2014 as the grocery industry continues to evolve to suit today's eclectic, diverse and conscientious consumer."
To read the Supermarket News story, click here.
The article starts by pointing out that the "big three" made major moves. Kroger agreed to buy Harris Teeter, Safeway sold its Canada division and announced that its closing its Dominick's chain in Chicago (only a year after closing all but one of the company's Genuardi's stores), and Supervalu sold 877 stores - including the Albertsons and Acme chains - to an investment group led by Cerberus that includes Kimco and Philadelphia's Lubert Adler.
Regarding the Supervalu deal, Albertsons Chief Executive Robert Miller told Supermarket News that "we're in this for the long haul," and that "we have no plans to sell any of the brands."
Whether Miller is being truthful, or simply truthful for now, is yet to be seen. There are many that don't believe the company will hold on to Acme - or at least the banner's many underperforming stores - for very long.
As for the industry's future, Irene Marks and David Mell of Wells Fargo believe "consolidation and capital markets activity will remain robust well into 2014 as the grocery industry continues to evolve to suit today's eclectic, diverse and conscientious consumer."
To read the Supermarket News story, click here.
Wednesday, October 23, 2013
Cerberus exploring a deal to takeover Safeway
According to a report from The Chicago Tribune, Cerberus Capital Management is exploring a deal for all or part of Safeway, the second-largest supermarket operator in the U.S. In addition, Supermarket News said this morning that according to a Reuters report, Safeway has engaged Goldman Sachs to explore a potential private equity takeover.
Safeway, which exited the Philadelphia market by selling or closing its Genuardi's stores (with the exception of one remaining store in Audubon, PA) and recently announced that it plans to exit the Chicago market by selling its Dominick's chain, just received clearance from Canada to sell its 212 stores there to Empire Co. for $5.8 billion in cash.
Earlier this year, Cerberus led an investor group that included Kimco in a $3.3 billion acquisition of a group of supermarket chains from Supervalu that included Acme, Albertsons and Jewel-Osco.
Other grocery deals completed this year included Kroger's $2.5 billion acquisition of Harris Teeter, Bi-Lo Holdings $265 million purchase of three Delhaize chains, and Spartan's acquisition of Nash Finch.
Safeway has experience with private equity, as KKR took the supermarket chain private in 1986. KKR sold its stake 13 years later and reportedly made a $7 billion profit.
According to Safeway's website, there are currently over 1,600 Safeway stores in the United States and Canada. Banners include Safeway, Vons, Dominick's, Randalls, Tom Thumb and Carrs.
Safeway, which exited the Philadelphia market by selling or closing its Genuardi's stores (with the exception of one remaining store in Audubon, PA) and recently announced that it plans to exit the Chicago market by selling its Dominick's chain, just received clearance from Canada to sell its 212 stores there to Empire Co. for $5.8 billion in cash.
Earlier this year, Cerberus led an investor group that included Kimco in a $3.3 billion acquisition of a group of supermarket chains from Supervalu that included Acme, Albertsons and Jewel-Osco.
Other grocery deals completed this year included Kroger's $2.5 billion acquisition of Harris Teeter, Bi-Lo Holdings $265 million purchase of three Delhaize chains, and Spartan's acquisition of Nash Finch.
Safeway has experience with private equity, as KKR took the supermarket chain private in 1986. KKR sold its stake 13 years later and reportedly made a $7 billion profit.
According to Safeway's website, there are currently over 1,600 Safeway stores in the United States and Canada. Banners include Safeway, Vons, Dominick's, Randalls, Tom Thumb and Carrs.
Wednesday, January 16, 2013
Property worth $4.4 billion in Supervalu deal
In a Wall Street Journal story published earlier this week, Karen Short of BMO Capital Markets estimates the property value of the real estate bought by Cerberus Capital Management and its partners from Supervalu to be worth $4.4 billion. The partnership group agreed to pay $3.3 billion for Albertsons, Acme, Jewel-Osco, Star Market and Shaw's grocery stores.
According to the article, about half the 877 stores to be purchased are company-owned or subject to ground leases.
Cerberus' partners in the deal - Kimco Realty, Klaff Realty, Lubert-Adler and Schottenstein Real Estate Group - are all real estate companies, and are the same partners that teamed with Cerberus in 2006 to purchase 650 Albertsons stores. The group sold off some of those stores, closed others and kept several in operation. And they reportedly earned significant profits.
According to Kimco COO Mike Pappagallo, "Even though we recognize that the benefit here is primarily improving the overall operation of the business, we're comfortable with the fact that the real estate value we have, at minimum, supports the purchase price."
According to the article, about half the 877 stores to be purchased are company-owned or subject to ground leases.
Cerberus' partners in the deal - Kimco Realty, Klaff Realty, Lubert-Adler and Schottenstein Real Estate Group - are all real estate companies, and are the same partners that teamed with Cerberus in 2006 to purchase 650 Albertsons stores. The group sold off some of those stores, closed others and kept several in operation. And they reportedly earned significant profits.
According to Kimco COO Mike Pappagallo, "Even though we recognize that the benefit here is primarily improving the overall operation of the business, we're comfortable with the fact that the real estate value we have, at minimum, supports the purchase price."
Thursday, January 10, 2013
Supervalu sells Acme and four other brands; Kimco in on the deal
Supervalu announced this morning it has a deal in place to sell Acme and four other supermarket chains for $3.3 billion to a group led by Cerberus Capital. The Cerberus group includes Kimco, the largest shopping center owner in the U.S., and Lubert-Adler Partners of Philadelphia, among others. Albertsons, Jewel-Osco, Shaw's and Star Market stores will be sold along with Acme.
Save-A-Lot, which has several stores in the Philadelphia region, will remain with Supervalu, along with Cub Foods, Farm Fresh, Shoppers, Shop 'n Save and Hornbachers. The company's food distribution business will also remain as part of Supervalu.
The Cerberus group is paying $100 million in cash and will assume approximately $3.2 billion in debt. It will also offer to purchase 30% of what remains of Supervalu for $4 per share. As of 12 noon today, Supervalu's stock was listed at $3.34 per share.
Wayne Sales, who was named Supervalu CEO last July, will be replaced by former OfficeMax CEO Sam Duncan.
The deal, which is projected to close by the end of the first quarter, includes 877 stores. Cerberus currently owns the Albertsons stores operated by Albertsons LLC, and once the deal closes they will own all Albertsons stores.
Acme, once the dominant grocer in the Philadelphia region and still one of the area's largest employers, has over 13,000 local workers at more than 100 supermarkets. Joe DiStefano of the Philadelphia Inquirer points out in his blog post today that Lubert Adler purchased Mervyn's department store in the late 2000s, then shut down the chain after paying itself millions in dividends. Although a court ordered them to repay the chain's creditors, the firm still profited from the deal.
Save-A-Lot, which has several stores in the Philadelphia region, will remain with Supervalu, along with Cub Foods, Farm Fresh, Shoppers, Shop 'n Save and Hornbachers. The company's food distribution business will also remain as part of Supervalu.
The Cerberus group is paying $100 million in cash and will assume approximately $3.2 billion in debt. It will also offer to purchase 30% of what remains of Supervalu for $4 per share. As of 12 noon today, Supervalu's stock was listed at $3.34 per share.
Wayne Sales, who was named Supervalu CEO last July, will be replaced by former OfficeMax CEO Sam Duncan.
The deal, which is projected to close by the end of the first quarter, includes 877 stores. Cerberus currently owns the Albertsons stores operated by Albertsons LLC, and once the deal closes they will own all Albertsons stores.
Acme, once the dominant grocer in the Philadelphia region and still one of the area's largest employers, has over 13,000 local workers at more than 100 supermarkets. Joe DiStefano of the Philadelphia Inquirer points out in his blog post today that Lubert Adler purchased Mervyn's department store in the late 2000s, then shut down the chain after paying itself millions in dividends. Although a court ordered them to repay the chain's creditors, the firm still profited from the deal.
Friday, September 7, 2012
Whole Foods growth is good for REITS
An article on SeekingAlpha.com last week described how Whole Foods' growth is helping its landlords, which often are major U.S. shopping center REITs. The story cited research that says supermarket industry revenue will grow an estimated 0.4 percent this year, while Whole Foods sales may rise as much as 16 percent.
With shopping center construction at extremely low levels, the companies that own the top shopping centers in a market face little to no competition from new construction. And it's the REITs - like Kimco, with 12 Whole Foods stores in its portfolio - that often have the top supermarkets and therefore benefit the most.
It doesn't take a rocket scientist to figure this one out. Whole Foods is successful and growing, and the real estate it occupies is typically high end and valuable, and likely to be owned by a large REIT. In the Greater Philadelphia Region, Wegmans can be put in the same category. Lease to a store that people love, and your center will do well. (But you already knew that.)
With shopping center construction at extremely low levels, the companies that own the top shopping centers in a market face little to no competition from new construction. And it's the REITs - like Kimco, with 12 Whole Foods stores in its portfolio - that often have the top supermarkets and therefore benefit the most.
It doesn't take a rocket scientist to figure this one out. Whole Foods is successful and growing, and the real estate it occupies is typically high end and valuable, and likely to be owned by a large REIT. In the Greater Philadelphia Region, Wegmans can be put in the same category. Lease to a store that people love, and your center will do well. (But you already knew that.)
Friday, February 17, 2012
Kimco called the best blue chip REIT by Seeking Alpha
A Seeking Alpha article earlier this week said that "many investors... will want to own blue chip REITs," calling them a "financially sound, 'safe' investment." The article went on to use Kimco, the "king of the jungle" in the retail sector with 946 properties overall, including many in the Greater Philadelphia region, as an example of such a REIT.
The author points to seven standards by which REITs should be measured, and explains in detail how Kimco excels in each of these areas. The seven standards are as follows, and a link to the story is below.
1. Outstanding proven management
2. Balance sheet strength
3. Access to capital to fund growth
4. Sector and geographical focus
5. Substantial insider ownership
6. Low payout ratio
7. Absence of conflicts of interest
The article concludes by saying "Kimco is an established blue chip REIT that has a long track record of skillfully managing risk and generating profits. This differentiation is what separates Kimco as the best - from all the rest."
Friday, September 30, 2011
Eagleville, PA store is fifth Genuardi's to close this year
The Genuardi's supermarket at Ridge Pike Plaza in Eagleville, PA (Montgomery County) is closing on October 8 after a 38-year run. According to reports, the lease was up and is not being renewed. The closing represents the fifth Genuardi's store to shut down this year.
Ridge Pike Plaza is owned by Kimco Realty. The Genuardi's space is approximately 37,000 square feet, with limited options for expansion. Four other supermarkets - Giant, Acme, Walmart and Aldi - are located within two miles of the center.
Ridge Pike Plaza is owned by Kimco Realty. The Genuardi's space is approximately 37,000 square feet, with limited options for expansion. Four other supermarkets - Giant, Acme, Walmart and Aldi - are located within two miles of the center.
Subscribe to:
Posts (Atom)