SITE Centers Corp., a company that owns open-air shopping centers in affluent suburbs, plans to spin off its Convenience assets into a new public REIT called Curbline Properties Corp.
Convenience assets are rows of shops that are located on the curbline of busy streets. The company says that this sector has low costs and high returns, and that Curbline Properties will be the first and only public REIT to focus on it. Curbline Properties will have a strong balance sheet and will be able to grow its portfolio in a large and liquid market.
SITE Centers will keep its portfolio of grocery, lifestyle, net lease and regional power center properties in the best submarkets in the United States. The company says that these properties have high income potential and demand, and that it will continue to enhance their value through leasing, redevelopment and asset sales. The company has secured a $1.1B financing commitment to pay off its unsecured debt before the spin-off.
The company’s management team has a proven track record of executing strategic transactions, such as selling $6.9 billion of assets, spinning off Retail Value Inc., and unwinding joint ventures.