BEACHWOOD, Ohio and
COLUMBUS, Ohio, Sept. 7, 2011 /PRNewswire/ -- DDR (NYSE: DDR) and
Glimcher Realty Trust (NYSE: GRT) today announced that the
companies have entered into an agreement to swap two assets better
aligned with the other's operating platforms and strategies. DDR
will sell Glimcher its open-air mall, Town Center Plaza, in
Kansas City, Kansas; and Glimcher
will sell DDR its power center, Polaris Towne Center, in
Columbus, Ohio. The transaction is
expected to close in the fourth quarter of 2011, subject to the
satisfaction or waiver of customary closing conditions.
The valuations for both assets were set using consistent cap
rates that are in line with the current market. These valuations
were adjusted for the debt profiles on each property.
DDR and Glimcher believe the transaction is mutually beneficial
given the core competencies of each organization, the proven
execution of both companies' operating platforms and the long-term
value creation potential of each asset.
"We are excited about this transaction that not only enhances
the quality of Glimcher's mall portfolio but is also expected to be
accretive to our earnings," stated Michael
P. Glimcher, Chairman of the Board and CEO of Glimcher. "We
are also pleased to work with a respected peer like DDR on a
transaction that provides a strategic step forward for both of our
companies."
Town Center Plaza, which Glimcher will purchase from DDR for
approximately $139 million, is a
650,000 square-foot open-air mall anchored by Macy's and Dick's
Sporting Goods and features Pottery Barn and Anthropologie. Town
Center Plaza is well aligned with Glimcher's core competencies and
capitalizes on its deep tenant relationships within the mall
sector. Town Center Plaza's high sales productivity of more than
$400 psf and 95% occupancy level will
enhance the quality of Glimcher's mall portfolio.
"The simultaneous disposition of Town Center Plaza and
acquisition of Polaris Towne Center is consistent with our
strategic objective of simplifying our portfolio and focusing on
what we do best," said Daniel B.
Hurwitz, president and chief executive officer of DDR. "The
high level of collaboration, creativity and trust between DDR and
our colleagues at Glimcher made this rare type of transaction
possible."
Polaris Towne Center, which DDR will purchase from Glimcher for
approximately $80 million, is a
700,000 square-foot, market-dominant prime asset anchored by
Target, Lowe's, Kroger, Best Buy, and TJ Maxx. Polaris Towne
Center will be the seventh asset owned by DDR in the Columbus MSA,
solidifying the company's position as the dominant power center
owner and manager in the market. DDR will deploy the additional net
proceeds from the sale of Town Center Plaza into prime assets
currently under contract.
Safe Harbor
Glimcher Realty Trust
This news release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Such statements are based on assumptions and
expectations that may not be realized and are inherently subject to
risks and uncertainties, many of which cannot be predicted with
accuracy. Future events and actual results, financial and
otherwise, may differ from the results discussed in the
forward-looking statements. Risks and other factors that might
cause differences, some of which could be material, include, but
are not limited to, economic and market conditions, tenant
bankruptcies, bankruptcies of joint venture (JV) partners,
rejection of leases by tenants in bankruptcy, financing and
development risks, construction and lease-up delays, cost overruns,
the level and volatility of interest rates, the rate of revenue
increases versus expense increases, the financial stability of
tenants within the retail industry, the failure of Glimcher to make
additional investments in regional mall properties and
redevelopment of properties, the failure to acquire properties as
and when anticipated, the failure to fully recover tenant
obligations for CAM, taxes and other property expenses, failure to
comply or remain in compliance with covenants in the company's debt
instruments, failure or inability to exercise available extension
options on debt instruments, failure of Glimcher to qualify as a
real estate investment trust, termination of existing JV
arrangements, conflicts of interest with the company's existing JV
partners, failure to achieve projected returns on development
properties, the failure to sell mall and community centers and the
failure to sell such properties when anticipated, the failure to
achieve estimated sales prices and proceeds from the sale of
malls, increases in impairment charges, additional impairment
charges, as well as other risks listed in this news release and
from time to time in Glimcher's reports filed with the Securities
and Exchange Commission or otherwise publicly disseminated by
Glimcher.
DDR
DDR considers portions of the information in this press release
to be forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, both as amended, with respect to the
Company's expectation for future periods. Although the Company
believes that the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, it can give no
assurance that its expectations will be achieved. For this
purpose, any statements contained herein that are not historical
fact may be deemed to be forward-looking statements. There are
a number of important factors that could cause our results to
differ materially from those indicated by such forward-looking
statements, including, among other factors: our ability to
successfully integrate Polaris Towne Center into our operations and
deploy the additional proceeds from Town Center Plaza into prime
assets; local conditions such as oversupply of space or a reduction
in demand for real estate in the area; competition from other
available space; dependence on rental income from real property;
the loss of, significant downsizing of or bankruptcy of a major
tenant; constructing properties or expansions that produce a
desired yield on investment; our ability to sell assets on
commercially reasonable terms; and our ability to secure equity or
debt financing on commercially acceptable terms or at all. For
additional factors that could cause the results of the Company to
differ materially from those indicated in the forward-looking
statements, please refer to the Company's Form 10-K for the year
ended December 31, 2010. The
Company undertakes no obligation to publicly revise these
forward-looking statements to reflect events or circumstances that
arise after the date hereof.
About Glimcher Realty Trust
Glimcher Realty Trust, a real estate investment trust, is a
recognized leader in the ownership, management, acquisition and
development of malls, which includes enclosed regional malls and
open-air lifestyle centers as well as community
centers. Glimcher® is a registered trademark of Glimcher
Realty Trust.
Glimcher Realty Trust's common shares are listed on the New York
Stock Exchange under the symbol "GRT." Glimcher Realty Trust's
Series F and Series G preferred shares are listed on the New York
Stock Exchange under the symbols "GRTPrF" and "GRTPrG,"
respectively. Glimcher Realty Trust is a component of both the
Russell 2000® Index, representing small cap stocks, and the Russell
3000® Index, representing the broader market.
About DDR
DDR is an owner and manager of 546 primarily open-air,
value-oriented shopping centers that leverages its retail knowledge
to help tenants be successful and create value for its
shareholders. DDR operates a total of 126 million square feet in 41
states, Puerto Rico and
Brazil, concentrated in high
barrier-to-entry markets with stable populations and high growth
potential. DDR is a self-administered and self-managed REIT
operating as a fully integrated real estate company, and is
publicly traded on the New York Stock Exchange under the symbol
DDR. Additional information about the company is available at
www.ddr.com.
SOURCE Developers Diversified Realty Corporation; Glimcher
Realty Trust