BEACHWOOD, Ohio, Sept. 29, 2011 /PRNewswire/ --
DDR Corp. (NYSE: DDR) today announced that it
has acquired three prime shopping centers for $110
million and disposed of $59 million of non-prime
assets in the third quarter. DDR continues to successfully
recycle capital from asset sales into the acquisition of prime
shopping centers, and has completed $150 million of acquisitions and
$166 million of dispositions year to date. Consistent
with previously announced acquisitions, all three third quarter
additions have a demographic profile and projected compounded
annual growth rate that will enhance the existing DDR prime
portfolio metrics and continue to improve overall company asset
quality.
Third quarter acquisition activity:
DDR acquired two prime assets in Charlotte,
North Carolina, Cotswold Village
and The Terraces at SouthPark, for $85 million and one prime asset, Chapel
Hills East, in Colorado Springs,
Colorado for $25 million. The
assets total 500,000 square feet of gross leasable area and range
between 96% and 100% leased. In addition, the assets are occupied
by many high quality retailers typically found in DDR shopping
centers including Whole Foods, Marshalls, PetSmart, Best Buy,
Harris Teeter, ULTA, Old Navy, and
DSW. With the inclusion of the recently acquired assets, DDR
expanded its presence in the Charlotte trade area to nine prime assets
representing 2.2 million square feet and the Denver trade area to nine prime assets
representing 2.8 million square feet.
In connection with these acquisitions, DDR assumed three
existing mortgage loans as follows:
Cotswold Village - $50.8 million
at 5.83%, maturing in 2016
The Terraces at SouthPark - $6.6
million at 5.72%, maturing in 2012
Chapel Hills East - $9.6 million at
5.24%, maturing 2021
As previously announced in the third quarter, and further
enhancing the Company's portfolio, DDR is also under contract to
acquire Polaris Towne Center in Columbus, Ohio, for $80 million. Polaris is a 700,000 square
foot prime asset anchored by Target, Lowe's, Kroger, Best Buy, and
TJ Maxx. It is anticipated that this transaction will close in the
fourth quarter of 2011.
Third quarter disposition activity:
The Company disposed
of ten non-prime assets and seven land parcels
during the quarter for aggregate proceeds of approximately
$59 million, all of which was the Company's
share. An additional $209 million of assets are currently
under contract for sale, of which the Company's share is
$196 million. Year to date, the Company has generated gross
proceeds of $214 million from asset
sales, of which the Company's share is $166
million. Since 2007, DDR has completed $2.3 billion of dispositions of primarily
non-prime assets.
Daniel B. Hurwitz, president and chief executive officer of
DDR, commented, "We are pleased with the continued execution
of our capital recycling strategy and are very confident that
these prime acquisitions will enhance our compounded annual growth
rate and net asset value. Our successful strategy of funding
acquisitions with disposition proceeds will continue and
obviates the need to access common equity to support portfolio
enhancement initiatives."
Safe Harbor
DDR considers portions of the information in this press release
to be forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934, both as amended, with
respect to the Company's expectation for future periods. Although
the Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions,
it can give no assurance that its expectations will be achieved.
For this purpose, any statements contained herein that are not
historical fact may be deemed to be forward-looking statements.
There are a number of important factors that could cause our
results to differ materially from those indicated by such
forward-looking statements, including, among other factors, local
conditions such as oversupply of space or a reduction in demand for
real estate in the area; competition from other available space;
dependence on rental income from real property; the loss of,
significant downsizing of or bankruptcy of a major tenant;
constructing properties or expansions that produce a desired yield
on investment; our ability to buy or sell assets on commercially
reasonable terms; our ability to complete acquisitions or
dispositions of assets under contract; our ability to secure equity
or debt financing on commercially acceptable terms or at all; our
ability to enter into definitive agreements with regard to our
financing and joint venture arrangements or our failure to satisfy
conditions to the completion of these arrangements and the success
of our capital recycling strategy. For additional factors that
could cause the results of the Company to differ materially from
those indicated in the forward-looking statements, please refer to
the Company's Form 10-K for the year ended December 31, 2010.
The Company undertakes no obligation to publicly revise these
forward-looking statements to reflect events or circumstances that
arise after the date hereof.
About DDR
DDR is an owner and manager of 546 value-oriented shopping
centers representing 126 million square feet in 41 states,
Puerto Rico and Brazil. The company's assets
are concentrated in high barrier-to-entry markets with stable
populations and high growth potential and its portfolio is actively
managed to create long-term shareholder value. DDR is a
self-administered and self-managed REIT operating as a fully
integrated real estate company, and is publicly traded on the New
York Stock Exchange under the ticker symbol DDR. Additional
information about the company is available at www.ddr.com.
SOURCE DDR Corp.