BEACHWOOD, Ohio, Oct. 1, 2013 /PRNewswire/ -- DDR Corp. (NYSE:
DDR) announced the closings of its previously announced acquisition
activity totaling $591 million. The
acquisitions include a portfolio of seven prime power centers in a
newly-formed joint venture with an affiliate of Blackstone Real
Estate Partners VII L.P. ("Blackstone") for $332 million in August and two market dominant
regional power centers in Orlando,
Florida and Atlanta,
Georgia for an aggregate $259
million in July. Also during the third quarter, DDR disposed
of $138 million of non-prime assets,
of which $104 million was the
Company's share.
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These nine prime shopping centers are leased to tenants with
strong credit profiles typically found in the DDR portfolio,
located in the top 50 MSA's, and feature an average trade area
population of over 340,000 people. The investments were funded with
new common equity raised in May, asset sales, assumed debt and new
mortgage debt.
Third quarter acquisition activity:
DDR acquired two regional power centers located in Orlando and Atlanta. Winter Garden Village, located in
Orlando, is a 1.1 million square
foot market dominant power center that features tenants such as
Target, Lowe's, Marshalls/HomeGoods, Best Buy, Ross Dress For Less,
Bed Bath and Beyond, Sports Authority, Staples, PetSmart, World
Market, Old Navy, and ULTA. In addition, the asset will benefit
from additional traffic in future years as a Florida hospital just broke ground on a
medical campus adjacent to the shopping center. Cumming Town Center
is a 311,000 square foot regional power center in a northeastern
suburb of Atlanta, near DDR's
existing Cumming Marketplace shopping center. The shopping center
is 100% leased and is anchored by Dick's Sporting Goods,
T.J. Maxx/HomeGoods, Best Buy,
Staples, Old Navy, and Petco.
Additionally, DDR acquired seven prime shopping centers,
comprised of 2.4 million square feet of GLA, in a partnership with
Blackstone. Blackstone owns 95% of the common equity of the joint
venture and DDR owns the remaining 5%, with DDR providing leasing
and management services. The assets are located in supply
constraint MSA's including Los
Angeles, San Diego,
Washington DC, Portland, and Cincinnati and feature high-quality retailers
such as Target, Walmart, Ross Dress
for Less, Dick's Sporting Goods, Petco, Best Buy, Wegmans, and The
Fresh Market. The portfolio is 93% leased and presents unique
redevelopment and leasing opportunities that should allow DDR's
operating platform to add additional value to the properties. DDR's
investment in the venture also includes $30
million in preferred equity with a fixed dividend rate of
9%.
Third quarter disposition activity:
During the quarter, DDR disposed of 16 non-prime operating
assets and 6 non-income producing assets for gross proceeds of
$138 million, of which the Company's
share was $104 million. An additional
$79 million of non-prime assets are
currently under contract for sale, including $48 million of non-income producing assets.
"I am pleased to report another quarter where we continued our
strategic capital recycling efforts in order to further upgrade our
high quality portfolio and enhance our long term growth rate," said
David J. Oakes, president and chief
financial officer of DDR.
About DDR Corp.
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,
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; and the
success of our capital recycling strategy. 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.