BEACHWOOD, Ohio, Oct. 17, 2011 /PRNewswire/ -- DDR Corp. (NYSE:
DDR) today announced plans to redevelop four shopping centers in
Puerto Rico – Plaza del Sol and
Rexville Plaza in Bayamon, Plaza del Norte in Hatillo and Plaza
Escorial in Carolina.
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"These redevelopments are being driven by strong tenant demand
for high-quality space, and with limited new construction on the
island, our centers continue to offer a compelling choice for
expanding retailers," said Paul
Freddo, senior executive vice president of leasing &
development for DDR.
DDR is making a gross investment in these centers of over
$50 million and projects to generate
a return that exceeds the Company's 10 percent return on investment
threshold for redevelopment. The projects will be funded with
retained cash flow and capital recycled from the continued
disposition of non-prime assets.
The redevelopment at Plaza del Sol, a 676,000 square-foot
enclosed mall that features Walmart, Home Depot, Caribbean Cinemas
and Bed Bath & Beyond, is expected to start in early 2012. The
project includes relocating the existing food court and converting
the former food court into approximately 25,000 square feet of
in-line space in the highly-desired and highly-trafficked central
corridor of the mall. The expected completion date is late 2012. It
is anticipated the redevelopment and re-merchandising effort will
further enhance the current sales per square foot of over
$500.
Plaza del Norte, a 671,000
square-foot enclosed mall that also generates over $500 in sales per square foot and features
Walmart, Sears, Toys "R" Us and T.J.Maxx, will be redeveloped to include a
30,000 square-foot expansion and renovation of the existing
JCPenney. The project also includes the addition of a new Rooms To
Go, the combination of three small shop units to accommodate a new
PetSmart, new carts and kiosks and a significant interior and
exterior renovation. The project is expected to be completed in
early 2013.
The improvements at Rexville Plaza include the addition of new
CVS and Marshalls stores in the space currently occupied by an
underperforming Pueblo Supermarket. In addition, the redevelopment
and re-merchandising strategy will greatly enhance the property
level cash flow and significantly upgrade the physical components
of the asset. The project is expected to be completed in summer
2012.
The project at Plaza Escorial, which currently features a
Walmart and Sam's Club that together generate annual sales in
excess of $250 million, will include
the addition of a new PetSmart store which will open prior to year
end in the space formerly occupied by Borders. This location will
represent PetSmart's fourth location in a DDR center in
Puerto Rico.
"This investment in a number of our most productive assets will
improve the experience for our shoppers and solidify the
market-leading position for these prime centers," concluded Mr.
Freddo.
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.