Wheeler Real Estate Investment Trust is to acquire, for nominal consideration, Wheeler Development, a company wholly-owned by Wheeler's chairman and chief executive Jon S Wheeler.
With the addition of Wheeler Development, the company can seek new potential opportunities while simultaneously leveraging the benefit of owning a taxable REIT subsidiary that allows the company to provide development services to current tenants or potentially third parties.
The company expects Wheeler Development to be integrated into the REIT by 15 January 2014.
Jon Wheeler says: "Currently, Wheeler has primarily focused on acquiring quality, grocery-anchored assets with a high occupancy rate and stable tenant base. We felt that the greatest potential for additional upside was to bring on a development portion to the REIT, allowing our company to leverage our expertise in property selection and asset management while providing our shareholders the opportunity to benefit from the upside potential at minimal cost. We feel that the inclusion of Wheeler Development into the REIT will provide an opportunity to bring a wide range of development services in-house, which we believe will add value to the company and therefore generate a higher level of return to our shareholders."