BEACHWOOD, Ohio, Aug. 13, 2013 /PRNewswire/ -- DDR Corp.
(NYSE: DDR) today announced that a joint venture formed with an
affiliate of Blackstone Real Estate Partners VII L.P.
("Blackstone") has closed on the acquisition of a portfolio of
seven prime shopping centers totaling 2.4 million square
feet. The assets are located in supply constrained MSA's
including Los Angeles,
San Diego, Washington DC, Portland, and Cincinnati. The purchase
price is $332 million, including
assumed debt of $207 million and
$28 million of new mortgage debt.
Blackstone owns 95% of the common equity of the joint venture and
an affiliate of DDR owns the remaining 5%. DDR also invested
$30 million in preferred equity in
the venture with a fixed dividend rate of 9%, and will provide
leasing and management services. DDR's investment will be funded
through proceeds from asset sales. Similar to the first
DDR/Blackstone joint venture, DDR has various governance
arrangements allowing it to potentially acquire four of the most
dominant assets in the portfolio, which contribute over 80% of
total NOI.
(Logo: http://photos.prnewswire.com/prnh/20110912/CL65938LOGO
)
The portfolio features prime shopping centers with an average
size of approximately 345,000 square feet and occupied with
high-quality retailers including Target, Walmart, Ross Dress for Less, Dick's Sporting Goods,
Petco, Best Buy, Wegmans, and The Fresh Market. Trade area
demographics for the portfolio feature average household income of
approximately $75,000 and population
of over 310,000 people. The portfolio is currently 93% leased and
presents unique redevelopment and leasing opportunities which
should allow DDR's operating platform to add additional value to
the properties.
Daniel B. Hurwitz, chief
executive officer of DDR, remarked, "We are pleased to advance our
relationship with Blackstone and further our strategic objective to
creatively source acquisition opportunities. The partnership
structure will enhance our cash flow and provide proprietary access
to prime assets for potential acquisition at a future date. The
assets fit nicely into our operating platform and we look forward
to creating value for our partner and our shareholders."
The shopping centers being acquired include:
|
|
Total
GLA
|
Center
|
MSA
|
(ksf)
|
Silver Spring
Square
|
Harrisburg,
PA
|
573
|
Falcon Ridge Town
Center
|
Los Angeles,
CA
|
423
|
Sycamore
Crossing
|
Cincinnati,
OH
|
391
|
Indian
Springs
|
Cincinnati,
OH
|
349
|
Fortuna
Center
|
Washington,
DC
|
232
|
Orchards Market
Center
|
Portland,
OR
|
223
|
Vista
Village
|
San Diego,
CA
|
213
|
|
|
2,404
|
About DDR
DDR is an owner and manager of 435 value-oriented shopping
centers representing 115 million square feet in 39 states,
Puerto Rico and Brazil. The Company's assets are concentrated
in high barrier-to-entry markets with stable populations and high
growth potential and its portfolio is actively managed to create
long-term shareholder value. 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 ticker symbol DDR. Additional information about the
company is available at www.ddr.com, as well as on Twitter,
LinkedIn, Facebook and Pinterest.
Safe Harbor
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 complete the proposed acquisition of
properties from the Blackstone joint venture, 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 buy or sell assets on commercially
reasonable terms; our ability to complete acquisitions or
dispositions of assets under contract; our ability to secure equity
or debt financing on commercially acceptable terms or at all; our
ability to enter into definitive agreements with regard to our
financing and joint venture arrangements or our failure to satisfy
conditions to the completion of these arrangements; the success of
our capital recycling strategy; and the finalization of the
financial statements for the three-month period ended June 30, 2013. 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, 2012, as amended. The Company
undertakes no obligation to publicly revise these forward-looking
statements to reflect events or circumstances that arise after the
date hereof.
SOURCE DDR Corp.