Under the agreement, Kravco will, in effect, become the East Coast office of Hahn Co., a Trizec subsidiary based in San Diego. Kravco officials said they expected that Kravco's staff would not be reduced as a result of the sale.
"We look forward to working with the Hahn Co. to create a truly national regional-mall company with a diversified geographic and economic base," F. Carl Dieterle Jr., Kravco's president, said in a statement.
Kravco, which is based in King of Prussia, employs about 150 people at its headquarters and about 350 elsewhere in the country. The company manages 30
malls nationwide, most of which are owned, in part, by past or present Kravco offficials.
Although Hahn will be taking over all of Kravco's management operations, the firm will not get an ownership stake in several high-profile malls in this area - among them Oxford Valley Mall and the Court and Plaza at King of Prussia. Nippon Life Insurance, Japan's largest insurance company, last year bought a 50 percent interest in the two King of Prussia malls.
Hahn is ranked as the fifth-largest shopping mall manager in the United States and Kravco as the eighth-largest by The Monitor, a trade publication.
The merged company should rank third - slightly behind Melvin Simon & Associates and Edward J. DeBartolo Corp. and ahead of The Rouse Co. of Columbia, Md.
Trizec, a publicly traded company based in Calgary, Alberta, Canada, is considered one of the largest real estate firms in North America, with a portolio worth more than $9 billion. Its largest stockholder is a holding company representing Edgar and Peter Bronfman, heirs of the Seagram liquor family. In addition to Hahn Co., which Trizec acquired in 1980, Trizec owns 25 percent of The Rouse Co.