Developers Diversified Realty and Its Joint Ventures Receive Over $500 Million of Additional New Loans and Lender Commitments
March 27 2008 - 8:59AM
Marketwired
CLEVELAND, OH , the nation's leading owner, developer and
manager of market-dominant shopping centers, today announced it has
received over $500 million of additional new loans and lender
commitments.
Developers Diversified received $350 million of net proceeds
from a new portfolio of mortgages with a fixed interest rate of 5%
interest-only debt service payments, and a five-year maturity. The
financing was provided by a life insurance company.
Earlier this week, the Company closed a $71 million construction
loan on its Homestead, Florida development project. The
interest-only loan, which was provided by three of the Company's
commercial banking relationships, has an interest rate of LIBOR
plus 120 basis points and has a three-year term, plus two one-year
extension options.
Also, Developers Diversified recently extended a $72 million
term loan secured by the two assets held in its RVIP VII joint
venture, of which the Company's proportionate share ownership is
21%. The loan has an interest rate of LIBOR plus 125 basis points
and has a two-year term, plus a one-year extension option. The loan
was provided by one of the Company's commercial banking
relationships.
Developers Diversified's Sonae Sierra Brazil joint venture,
which owns and develops retail real estate in Brazil, closed an
R$50 million credit facility in late February. The one-year
facility was provided by a Sao Paulo-based commercial bank and has
an interest rate of CDI plus 45 basis points, which equated to
pricing of approximately 11.5% at closing.
Developers Diversified also has a signed term sheet for a $50
million construction loan on smaller developments at an interest
rate of LIBOR plus 110 basis points. The loan is expected to close
early in the second quarter.
Scott A. Wolstein, Chairman and Chief Executive Officer of
Developers Diversified, commented, "We are pleased to announce
these new financings, which underscore our strong balance sheet,
banking relationships, and ability to maintain broad access to
numerous capital sources despite the challenges of today's
market."
William H. Schafer, Executive Vice President and Chief Financial
Officer of Developers Diversified, commented, "We are pleased with
the liquidity and financial flexibility these new financings
provide. We have effectively and proactively addressed
substantially all of our consolidated 2008 maturities within the
first quarter of the year and are well-positioned to meet our
remaining unconsolidated joint venture maturities."
Developers Diversified Realty owns and manages over 740 retail
operating and development properties in 45 states, plus Puerto
Rico, Brazil, Russia, and Canada, totaling approximately 163
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 Realty is available on the Internet at
http://www.ddr.com.
Contact: Michelle M. Dawson Vice President of Investor Relations
Developers Diversified Realty Email: Email Contact Main: (216)
755-5500
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