SANTA MONICA, Calif.--(BUSINESS WIRE)--April 20, 2005--Centro Watt, the North American retail property joint venture between California-based Watt Commercial Properties and Australia-based Centro Properties Group, has completed the acquisition of Kramont Realty Trust, a transaction valued at more than $1.2 billion. The transaction completes the merger and privatization of Kramont which will become an important part of the Centro Watt U.S. platform. Kramont's existing portfolio of 93 neighborhood and community retail centers totaling 12.6 million square feet are now held by Centro Watt America REIT, a private REIT in the United States that will be managed by Centro Watt.

"This acquisition is a strong addition to our existing portfolio of community and neighborhood retail centers," said Jim Maginn, CEO of Watt Commercial Properties and Centro Watt. "It continues our strategy of geographic diversification and expansion in a highly competitive market for retail property acquisitions."

Acquisition of the Kramont portfolio is the largest transaction by Centro Watt since its formation in 2003 and represents the fourth successful major acquisition secured on its behalf by Watt Realty Advisors.

The properties are located in 15 states with concentration from Northern Virginia to Boston including Pennsylvania, New Jersey, New York and Connecticut. Overall, the centers are 93 percent leased and are 80 percent grocery, value and/or drug store anchored. Major tenants include Ahold, ShopRite and Eckerd, plus many major national retailers such as Wal-Mart, TJX Companies, and Kohls. Kramont operated as a publicly traded REIT. The Centro Watt portfolio now totals more than 17 million square feet with centers on the west coast and in the southeastern and northeastern United States.

John Wickser, managing director of Watt Realty Advisors led the acquisition team. "Our strong relationships and our team of experienced real estate professionals were key to sourcing and successfully acquiring this portfolio," commented Wickser. "We were able to quickly analyze the company and the properties and create a deal structure that worked for all parties and resulted in a successful off-market acquisition. These retail centers fit the Centro Watt acquisition criteria, are well located and post solid returns."

Kramont's 135 employees will join the Centro Watt management group that provides property management, asset management, leasing, development, acquisition and disposition services for the retail assets owned by Centro Watt in North America. "The Kramont team provides a valuable opportunity to grow the Centro Watt presence nationally," added Maginn.

Watt Realty Advisors is actively pursuing additional retail property acquisitions on behalf of the Centro Watt partnership as well as other investors.

"The identification of this rare opportunity to acquire a company and a portfolio that fits perfectly into the Centro Watt business model is a testament to the experience, talent and dedication of the Watt Realty Advisors team," observed Maginn.

Centro Watt

Headquartered in Santa Monica, Calif., Centro Watt is a national real estate company focused on the acquisition and management of open-air retail centers throughout the U.S. Founded in 2003, the company is a partnership between Watt Commercial Properties, one of the largest and most experienced owners, developers and managers of commercial real estate in the United States, and Centro Properties Group, one of Australia's leading retail property owners and managers. Centro Watt currently owns and manages a portfolio of more than 17 million square feet of neighborhood and community retail centers primarily on the west coast and in the southeastern and northeastern United States.