Kite Realty Group Trust Secures Financing for Phase I of Holly Springs Towne Center
INDIANAPOLIS--(BUSINESS WIRE)-- Kite Realty Group Trust (KRG) (the Company) announced today that it has closed on a $37.5 million construction loan for Phase I of its Holly Springs Towne Center development in Holly Springs, North Carolina (Raleigh MSA). Construction has commenced on the project, which is approximately 80% leased or committed. Target will shadow anchor the first phase of the project in a 135,000 square foot building. In addition to Target, the center will be anchored by Dicks Sporting Goods, Marshalls, Michaels, and Petco. Other tenants include Pier 1 Imports, ULTA Beauty Salons, and Charming Charlie. Upon completion of Phase I of the development, the center will total approximately 375,000 square feet.
The construction loan was financed by Bank of America and has a three-year term with an option to extend for an additional two years. The loan bears an interest rate of LIBOR plus 250 basis points, which decreases to LIBOR plus 225 basis points after the completion of construction.
We are pleased to obtain financing that will allow us to deliver a first-class project to the Holly Springs community, said John A. Kite, the Companys Chairman and Chief Executive Officer. We have seen significant demand from quality tenants for this fast growing area.
About Kite Realty Group Trust
Kite Realty Group Trust is a full-service, vertically integrated real estate investment trust engaged in the ownership, operation, management, leasing, acquisition, construction, redevelopment and development of neighborhood and community shopping centers in selected markets in the United States. At March 31, 2012, the Company owned interests in a portfolio of 62 operating and redevelopment properties totaling approximately 9.2 million square feet and an additional three properties currently under in-process development totaling 0.6 million square feet.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks, uncertainties and other factors, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, performance, transactions or achievements, financial or otherwise, may differ materially from the results, performance, transactions or achievements expressed or implied by the forward-looking statements. Risks, uncertainties and other factors that might cause such differences, some of which could be material, include, but are not limited to: national and local economic, business, real estate and other market conditions, particularly in light of the recent slowing of growth in the U.S. economy; financing risks, including the availability of and costs associated with sources of liquidity; the Companys ability to refinance, or extend the maturity dates of, its indebtedness; the level and volatility of interest rates; the financial stability of tenants, including their ability to pay rent and the risk of tenant bankruptcies; the competitive environment in which the Company operates; acquisition, disposition, development and joint venture risks; property ownership and management risks; the Companys ability to maintain its status as a real estate investment trust (REIT) for federal income tax purposes; potential environmental and other liabilities; impairment in the value of real estate property the Company owns; risks related to the geographical concentration of our properties in Indiana, Florida and Texas; and other factors affecting the real estate industry generally. The Company refers you to the documents filed by the Company from time to time with the Securities and Exchange Commission, specifically the section titled Risk Factors in the Companys Annual Report on Form 10-K for the year ended December 31, 2011, which discuss these and other factors that could adversely affect the Companys results. The Company undertakes no obligation to publicly update or revise these forward-looking statements (including the FFO and net income estimates), whether as a result of new information, future events or otherwise.
Kite Realty Group Trust
Dan Sink, Chief Financial Officer, 317-577-5609
David Buell, Director, Financial Reporting, 317-713-5647
Source: Kite Realty Group TrustCopyright Business Wire 2012