Until recently, Glimcher Realty had been pruning its portfolio to retain only the highest-quality properties. But when Washington Prime, the Simon spin-off REIT with properties ranging from B-level malls to low-rent community centers, came calling with a $4.3 billion merger offer, the prospect of tapping Washington Prime’s balance sheet was too good to pass up, said Michael P. Glimcher, chairman of the board and CEO. “Not having to repair a balance sheet and a portfolio all at once is an easier task,” he said. The new company will benefit from a broader range of tenants and property types, he says. “There’s probably not a retailer that we won’t be doing business with,” he said. “Today’s tenants are jumping from asset type to asset type.”
WP Glimcher will be using its investment-grade balance sheet to buy properties. The deal was structured so that the company could reduce debt by taking on partners, selling off properties and pulling other levers.
