TIAA-CREF Global Real Estate and Developers Diversified to Form a Joint Venture to Acquire 67 Community Retail Center Properties
November 03 2006 - 8:30AM
PR Newswire (US)
NEW YORK and CLEVELAND, Nov. 3 /PRNewswire/ -- TIAA-CREF, the
financial services organization and leading provider of retirement
services in the academic, research, medical and cultural fields,
and Developers Diversified (NYSE:DDR), the nation's leading owner,
manager and developer of market-dominant community centers,
announced today a joint venture to purchase a portfolio of 67
community retail centers for approximately $3.0 billion of total
asset value. "We believe that this joint venture shows that
TIAA-CREF Global Real Estate can move nimbly on large and complex
transactions and forge strong relationships with expert operators,
such as Developers Diversified," said Tom Garbutt, managing
director and head of TIAA-CREF's Global Real Estate unit. "As a
long-term investor, we believe the purchase of high quality
properties such as the 67 community retail centers will be an
attractive way to bring value to our clients." The properties that
this joint venture intends to acquire represent a portion of the
assets that will be acquired by Developers Diversified upon the
consummation of its merger with Inland Retail Real Estate Trust,
Inc. ("Inland"). The execution of this merger agreement was
announced on October 23, 2006 and the merger is expected to be
completed in the first quarter of 2007. The purchase by the joint
venture of these 67 properties is conditioned upon the consummation
of Developers Diversified's merger with Inland and other closing
conditions. Scott Wolstein, Developers Diversified's Chairman and
Chief Executive Officer, commented, "We're delighted to establish
this strategic partnership with TIAA-CREF, which we consider to be
a leader among institutional real estate investors. TIAA-CREF's
early commitment to this portfolio acquisition underscores both
their recognition of the quality of the real estate and our ability
to create value through aggressive asset management." Mr. Garbutt
further stated, "We believe that the attractive pricing and terms
of this venture are a direct result of TIAA-CREF Global Real
Estate's early participation in this transaction. We have been
looking to strategically increase our retail exposure and we
believe this purchase represents a unique opportunity to do so
while focusing on opportunities for attractive rates of return for
our investors." Given Developers Diversified's size and experience,
TIAA-CREF expects to receive added value from Developers
Diversified's management through enhanced operating proficiency and
strong tenant relationships. An affiliate of TIAA will contribute
85% of the equity in the joint venture, and an affiliate of
Developers Diversified will contribute 15% of the equity in the
joint venture. The parties expect that leverage will not exceed 60%
of the aggregate value of the properties. The properties in this
portfolio are located predominately in Southeastern U.S. markets
and are currently anchored by leading discount and specialty
retailers. With an approximately $68 billion global portfolio of
direct and indirect investments, TIAA-CREF is one of the largest
institutional real estate investors in the nation. TIAA-CREF Global
Real Estate through the accounts it manages directly owns over $20
billion in real estate assets made up of primarily high quality
properties in the office, retail, industrial, and multi-family
sectors. Investments are both domestic -- covering more than 40
states and the District of Columbia -- and foreign -- in Canada and
Western Europe. About TIAA-CREF TIAA-CREF is a national financial
services organization with more than $390 billion in combined
assets under management (9/30/06) and the leading provider of
retirement services to individuals and institutions in the
academic, research, medical, philanthropic and cultural fields.
Further information can be found at http://www.tiaa-cref.org/.
About Developers Diversified Developers Diversified owns and
manages over 500 retail operating and development properties in 44
states, plus Puerto Rico and Brazil, totaling 118 million square
feet. The Company is a self-administered and self-managed real
estate investment trust (REIT) operating as a fully integrated real
estate company which acquires, develops and leases shopping
centers. Additional information about Developers Diversified is
available on the Internet at http://www.ddr.com/. This release
contains "forward-looking statements" within the meaning of Section
21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), and the Private Securities Litigation Reform Act
of 1995. All statements other than statements of historical facts
included in this release are forward-looking statements and are
prefaced by words such as, but not limited to, "will," "believes,"
and "expects." All forward-looking statements speak only as of the
date of this release. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause
the actual results, achievements or transactions of TIAA-CREF or
other parties, including Developers Diversified and Inland and
their affiliates, to differ from management's current expectations.
Such risks, uncertainties and other factors include, among others,
the consummation of the merger and the satisfaction of the
conditions to consummating the transfer of the 67 community retail
centers to the joint venture. Caution should be taken not to place
undue reliance on management's forward-looking statements, which
represent management's views only as of the date of this press
release. Neither management nor TIAA-CREF nor its Affiliates
undertake any obligation to update publicly or revise any
forward-looking statement, whether as a result of new information,
changed assumptions, future events or otherwise. TIAA-CREF Contact:
Developers Diversified Contact: Chad Peterson Michelle Dawson
Director, Media Relations Vice President of Investor Relations
Phone: 212-916-4808 Phone: 216-755-5500 Mobile: 917-715-9083
TIAA-CREF Individual & Institutional Services, LLC distributes
securities products. Teachers Insurance and Annuity Association
(TIAA), New York, NY, and TIAA-CREF Life Insurance Co., New York,
NY, issue insurance and annuities. DATASOURCE: TIAA-CREF CONTACT:
Chad Peterson, Director, Media Relations of TIAA-CREF, ,
+1-212-916-4808, Mobile: +1-917-715-9083; or Michelle Dawson, Vice
President of Investor Relations of Developers Diversified, ,
+1-216-755-5500 Web site: http://www.tiaa-cref.org/
http://www.ddr.com/ Company News On-Call:
http://www.prnewswire.com/comp/840938.html
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