CLEVELAND, Sept. 20 /PRNewswire-FirstCall/ -- Developers
Diversified Realty Corporation (NYSE: DDR) ("DDR") announced today
that it has originated a $31.7
million mezzanine loan to a subsidiary of EDT Retail Trust
(ASX: EDT) ("EDT") secured by equity interests in six prime
shopping center assets owned by EDT and managed and leased by DDR.
The mezzanine loan was funded in conjunction with the origination
of a new $142.3 million senior loan
secured by first mortgages on these EDT properties. DDR will
continue to lease and manage the assets on behalf of EDT pursuant
to the existing management and leasing agreement.
The seven-year mezzanine loan is co-terminus with the senior
loan and has a fixed interest rate of 10%. The aggregate loan to
value ratio for the senior and mezzanine loans is approximately
75%. DDR fully funded the mezzanine loan with the proceeds from the
recent sale of approximately 2.8 million shares of DDR common
stock.
David Oakes, Developers
Diversified's Chief Financial Officer stated, "We are pleased to
make this conservatively underwritten loan that we believe provides
an attractive risk-adjusted return on prime assets that we have
managed for years. Simultaneously funding this investment with new
equity is consistent with our stated strategic goals and is
beneficial to our covenants and funds from operations per
share."
Developers Diversified owns and manages approximately 620 retail
operating and development properties in 42 states, Brazil, Canada and Puerto
Rico. Totaling more than 136 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
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