Developers Diversified Realty Announces Terms of Redemption With Macquarie DDR Trust
July 09 2009 - 8:10PM
Marketwired
Developers Diversified Realty (NYSE: DDR) today announced that it
has entered into a binding agreement with joint venture partner
Macquarie DDR Trust (ASX: MDT) to redeem substantially all of its
interest in the DDR Macquarie Fund. A 100% interest in three high
quality assets will be transferred to Developers Diversified in
exchange for its approximate 14.5% ownership stake in DDR Macquarie
Fund and a cash payment of $1.6 million to the DDR Macquarie Fund.
The three assets to be transferred to Developers Diversified are
Perimeter Pointe, a 353,000 square foot community shopping center
located in Atlanta, Georgia; Town Center Prado, a 327,000 square
foot community shopping center in Marietta (Atlanta MSA), Georgia;
and Lake Brandon Plaza, a 197,000 square foot community shopping
center in Brandon (Tampa MSA), Florida. As of December 31, 2008,
the assets had an aggregate appraised value of approximately $146
million. Developers Diversified will be responsible for the
assumption or repayment of approximately $65 million mortgage debt
with a current final maturity of 2013 secured by Towne Center Prado
and Perimeter Point, while the DDR Macquarie Fund will repay the
$14 million of mortgage debt on Lake Brandon Plaza and transfer the
asset unencumbered. Developers Diversified will no longer be
responsible for its 14.5% share of over $1.0 billion of debt in the
DDR Macquarie Fund or the more than $600 million of 2009 and 2010
maturities.
It is anticipated that this redemption will be completed in the
second half of 2009, subject to MDT unitholder approval, lender
approval and other customary closing conditions. Developers
Diversified will continue to actively lease and manage the assets
that remain in the DDR Macquarie Fund and receive fees for these
services.
David Oakes, Developers Diversified's Senior Executive Vice
President of Finance and Chief Investment Officer, stated, "The
redemption is consistent with our stated goals of improving
liquidity and lowering leverage, simplifying our strategy and
structure, and increasing our portfolio's focus on Prime
properties. In addition to eliminating considerable near term debt
maturities, the transaction is also important because it provides
greater financial flexibility to both DDR and MDT as we maneuver
through this challenging environment."
Developers Diversified currently owns and manages over 700
retail operating and development properties in 45 states, plus
Puerto Rico, Brazil, and Canada, totaling over 153 million square
feet. Developers Diversified Realty is a self-administered and
self-managed real estate investment trust (REIT) operating as a
fully integrated real estate company which acquires, develops,
leases and manages shopping centers. Additional information about
Developers Diversified Realty is available on the Internet at
http://www.ddr.com.
Contact: Tom Morabito Senior Director of Investor Relations
Developers Diversified Realty Main: (216) 755-5500 E-mail: Email
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