BEACHWOOD, Ohio, Oct. 1, 2013 /PRNewswire/ -- DDR Corp.
(NYSE: DDR) announced the closing of its previously announced
acquisition of a portfolio of 30 prime power centers from its
existing joint venture with Blackstone Real Estate Partners VII
L.P. ("Blackstone"), as well as the settlement of its forward
equity sale. The investment was funded through a combination of
proceeds from the issuance of new common equity and unsecured debt,
preferred equity and mezzanine loan repayments, and the assumption
of existing mortgage debt.
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DDR acquired Blackstone's 95% interest in 30 open-air, value
oriented power centers previously held in joint venture. The 95%
leased portfolio is comprised of 11.8 million square feet of GLA
and features high credit quality tenants typically found in DDR's
power centers such as Walmart, Target, T.J.
Maxx, Kohl's, PetSmart, Bed Bath and Beyond, and Dick's
Sporting Goods. The portfolio features very strong trade area
demographics with an average household income of $91,000 and population of 543,000 people. The
acquisition further simplifies the Company's structure by reducing
joint venture assets by 20% and enhances EBITDA quality through the
conversion of shorter-term fee and interest income into higher
multiple, long-term property level cash flow with strong growth
potential.
"This investment further demonstrates our commitment to improve
the quality of the prime portfolio while simplifying our story and
enhancing our earnings composition. Our deep knowledge of the
assets reduces risk and gives us confidence in the long term growth
profile of the assets. We thank Blackstone for being outstanding
partners and greatly value our continued relationship," said
Daniel B. Hurwitz, chief executive
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.