CLEVELAND, April 22 /PRNewswire-FirstCall/ -- Developers
Diversified Realty Corporation (NYSE: DDR) (DDR) announced today
that Macquarie DDR Trust ("MDT" or "Trust") has completed a
A$9.5 million private placement with
EPN GP, LLC ("EPN") and that MDT plans to conduct a pro rata
entitlement offer to raise approximately A$200 million for debt reduction.
Upon the closing of the entitlement offering, EPN will be
acquiring Macquarie Group Limited's 50% interest in Macquarie DDR
Management LLC ("US Manager"), which is the operating manager for
the Trust. As a result, EPN will become DDR's partner in the US
Manager.
In October of 2009, DDR redeemed its interest in MDT's primary
operating company (the "US LLC"), and DDR retained the property
management and leasing contracts for the assets. DDR does not
anticipate that the transactions announced today will have any
impact on the operation of the assets. DDR will continue to provide
all property management and leasing services for MDT's assets and
continue to receive its contractual fees for those services.
David Oakes, Developers
Diversified's chief financial officer, commented, "We are pleased
that MDT has been able to source new capital from a knowledgeable
investor, and we look forward to working closely with EPN to manage
a better capitalized Trust and to continue to lease and manage the
many prime assets owned by the Trust."
Alex Berman, EPN's chief
executive officer, commented, "EPN is very pleased to enter into
this new investment venture and looks forward to managing the Trust
in partnership with DDR."
About EPN
EPN GP, LLP ("EPN") is a real estate investment venture jointly
formed by Elbit Plaza USA ("Elbit Plaza") and Eastgate Property LLC
("Eastgate"). EPN intends to take advantage of real estate
opportunities in the United
States, primarily in the retail sector, through direct
acquisitions and joint ventures with leading real estate operators
and owners of relevant assets or portfolios.
Elbit Plaza is a joint venture between Elbit Imaging Ltd.
("Elbit") and Plaza Centers N.V. ("Plaza"). Elbit is a global
diversified conglomerate dual listed on the Tel Aviv Stock Exchange
and NASDAQ Global Select Market (EMITF), which is active in several
principal fields including shopping and entertainment centers.
Plaza is a leading emerging markets developer of shopping and
entertainment centers, which maintains dual listing on the Main
Board of the London Stock exchange (PLAZ) and on the Warsaw stock exchange (PLZ). For more
information on Elbit and Plaza visit www.elbitimaging.com and
www.plazacenters.com.
Additional Details
A press release announcing specific details regarding the
private placement and recapitalization can be found on MDT's
website: www.macquarie.com.au/macquarieddr
Developers Diversified owns and manages approximately 640 retail
operating and development properties in 44 states, Brazil, Canada and Puerto
Rico. Totaling more than 140 million square feet, the
Company's shopping center portfolio features open-air,
value-oriented neighborhood and community centers, mixed-use
centers and lifestyle centers located in prime markets with stable
populations and high-growth potential. Developers Diversified is
the largest landlord in Puerto
Rico and owns a premier portfolio of regional malls in and
around Sao Paulo, Brazil.
Developers Diversified is a self-administered and self-managed REIT
operating as a fully integrated real estate company. Additional
information about the Company is available on the Company's website
at www.ddr.com.
SOURCE Developers Diversified Realty Corporation