INDIANAPOLIS, April 19 /PRNewswire-FirstCall/ -- Kite Realty Group Trust (NYSE: KRG) (the "Company") today announced the redevelopment of Glendale Mall into a 685,000 square foot power center anchored by Target, Macy's, and Lowe's, to be renamed Glendale Town Center. In connection with the redevelopment, the Company also announced that it closed today on the sale of 10.5 acres to Target Corporation. Demolition work has commenced and Target is expected to open in the summer of 2008.

Thomas K. McGowan, the Company's Executive Vice President and Chief Operating Officer stated, "The redevelopment of Glendale Town Center is a significant accomplishment for our team given the structural and logistical complexities we faced putting this plan into action. We greatly appreciate the cooperation of current tenants and the City of Indianapolis and believe that the new Glendale Town Center will be a successful anchor for the surrounding neighborhoods and the Keystone Avenue corridor."

In addition to the 129,000 square foot Target, Glendale Town Center is anticipated to include new small shop and professional office space, as well as two new outlots. The Company anticipates that its investment in the redevelopment, net of third party contributions, will be approximately $15 million.

John A. Kite, the Company's President and Chief Executive Officer stated, "We have long recognized the importance of this site to the Indianapolis community and are very pleased that we were able to use our development expertise to transform a challenged asset into a first class retail center. This project is part of our broader effort to create value through redevelopment of underutilized assets in our operating portfolio."

Demolition and construction activities will be coordinated around the existing tenants that will remain open throughout the redevelopment process, including Macy's, Lowe's, Kerasotes Theaters, Staples, the Indianapolis-Marion County Public Library, Lenscrafters, OASIS, Taco Bell, and O'Charley's.

About Kite Realty Group Trust

Kite Realty Group Trust is a full-service, vertically integrated real estate investment trust engaged in the ownership, operation, management, leasing, acquisition, construction, expansion and development of high quality neighborhood and community shopping centers in selected growth markets in the United States. The Company owns interests in a portfolio of operating retail properties, retail properties under development, operating commercial properties, a related parking garage, and parcels of land that may be used for future development of retail or commercial properties.

Safe Harbor Statement

Certain statements in this document that are not historical fact may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company to differ materially from historical results or from any results expressed or implied by such forward-looking statements, including without limitation: national and local economic, business, real estate and other market conditions; the ability of tenants to pay rent; the competitive environment in which the Company operates; financing risks; property ownership and management risks; the level and volatility of interest rates; financial stability of tenants; the Company's ability to maintain its status as a REIT for federal income tax purposes; acquisition, disposition, development and joint venture risks; potential environmental and other liabilities; and other factors affecting the real estate industry generally. The Company refers you to the documents filed by the Company from time to time with the Securities and Exchange Commission, specifically the section titled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2006, which discusses these and other factors that could adversely affect the Company's results. Except as otherwise required by the federal securities laws, the Company assumes no liability to update the information in this press release.

SOURCE Kite Realty Group Trust

Contact: Dan Sink, Chief Financial Officer, +1-317-577-5609, dsink@kiterealty.com, or Adam Chavers, Investor Relations, +1-317-713-5684, achavers@kiterealty.com, both of Kite Realty Group Trust