Developers Diversified Announces Redemption of Its Interest in Joint Venture with Macquarie DDR Trust
October 20 2009 - 3:44PM
Business Wire
Developers Diversified Realty Corporation (NYSE: DDR) announced
today that Macquarie DDR Trust unitholders have approved the
redemption of Developers Diversified’s interest in the MDT US LLC
joint venture and that the transaction has closed. A 100% interest
in three high-quality assets was transferred to Developers
Diversified in exchange for its approximate 14.5% ownership stake
in the venture and a cash payment of $1.6 million to the DDR
Macquarie Fund.
Details regarding the three shopping centers transferred to
Developers Diversified are listed below.
Shopping
Center
TotalSquareFeet
Location
AnchorTenants
Population(5 mile)
AverageHH Income(5 mile)
Perimeter Pointe
353,000
Atlanta, GA
Stein Mart, Babies R Us,Sports
Authority, L.A.Fitness, Office Depot,United Artists Theatre
220,609
$145,782
Towne Center Prado 327,000
Marietta, GA(Atlanta MSA)
Publix, Stein Mart, RossDress for
Less
171,568 $83,856 Lake Brandon Plaza 197,000
Brandon, FL(Tampa MSA)
Publix, CompUSA,Babies R Us,
Jo-AnnStores
186,029 $72,532
Developers Diversified repaid $17 million of mortgage debt on
the two Atlanta shopping centers as part of the redemption. These
two centers are now encumbered by $48 million of first mortgage
debt at an interest rate of LIBOR +3.5%, with a 2.0% LIBOR floor,
and a maturity of April 2013. The Florida shopping center is
unencumbered.
Developers Diversified remains the joint manager for the Trust
and continues to actively lease and manage the remaining assets in
the DDR Macquarie Fund and to earn fees for those services.
David Oakes, Senior Executive Vice President of Finance and
Chief Investment Officer, commented, “We are pleased to announce
the approval and closing of this redemption, which will provide
both parties with enhanced financial flexibility as we both make
progress on strengthening our balance sheets. For Developers
Diversified, this transaction simplifies our structure and gives us
100% ownership interest in three high-quality, prime assets. Most
importantly, the transaction is consistent with our goals of
simplifying our structure, lowering leverage and eliminating
near-term debt maturities.”
Developers Diversified owns and manages approximately 670 retail
operating and development properties in 44 states, Brazil, Canada
and Puerto Rico. Totaling more than 148 million square feet, the
Company’s shopping center portfolio features open-air,
value-oriented neighborhood and community centers, mixed-use
centers and lifestyle centers located in prime markets with stable
populations and high-growth potential. Developers Diversified is
the largest landlord in Puerto Rico and owns a premier portfolio of
regional malls in and around Sao Paulo, Brazil. Developers
Diversified is a self-administered and self-managed REIT operating
as a fully integrated real estate company. Additional information
about the Company is available on the Internet at www.ddr.com.
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