BEACHWOOD,
Ohio, June 14, 2017
/PRNewswire/ -- DDR Corp. (NYSE: DDR) and an affiliate
of Madison International Realty today announced
the recapitalization of a joint venture with 52 shopping centers
previously owned by DDR and various partners through the DDR
Domestic Retail Fund I, totaling $1.05
billion.
Madison International Real Estate
Liquidity Fund VI, an investment fund managed by Madison
International Realty, acquired 80% of the common equity of the
joint venture and an affiliate of DDR retained 20%. This ownership
structure is consistent with the structure of the joint venture
prior to the recapitalization and will be a long-term strategic
partnership. DDR will continue to provide leasing and
management services.
The portfolio, totaling 7.0 million square feet, consists
primarily of grocery anchored shopping centers located
predominantly in Florida and the Southeastern United States and was originally
formed in 2007. Three properties previously held by
the partnership have been excluded from the recapitalization and
are being held in a separate joint venture with the previous
partners of DDR Domestic Retail Fund I including DDR. The
recapitalization includes the repayment of all outstanding mortgage
debt previously held by the partnership with a new $707 million mortgage loan ($141 million at DDR share) secured by the 52
assets.
David Lukes, President and
Chief Executive Officer of DDR, commented, "We are pleased to
announce the closing of this transaction with Madison
International. The recapitalized venture will continue to
drive our return on invested equity, demonstrates the
sustainability of our joint venture business, and provides us the
ability to add value to a property type with which this management
team has extensive experience."
"We are very pleased to be partnering with DDR. This
venture is an exceptional opportunity and an excellent fit with our
investment strategy. Madison's investment will allow existing
partners to exit, Madison to expand its retail footprint, and DDR
to continue its value creation strategy. The portfolio
consists of destination grocery-anchored centers located in
Southeastern markets with growing populations and favorable
demographics," said Ronald M.
Dickerman, Founder and President of Madison International
Realty.
About DDR
Corp.
DDR is an
owner and manager of 309 value-oriented shopping centers
representing 103 million square feet in 35 states
and Puerto
Rico. The Company owns a high-quality portfolio of
open-air shopping centers in major metropolitan areas that provide
a highly-compelling shopping experience and merchandise mix for
retail partners and consumers. The Company actively manages its
assets with a focus on creating 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.
About Madison International Realty
Madison International Realty (www.madisonint.com) is a
leading liquidity provider to real estate investors
worldwide. Madison provides joint venture and preferred equity
capital for real estate owners and investors seeking to create an
exit strategy; or where existing sponsors seek to sell a portion of
their ownership position and take on a partner. The firm provides
equity for recapitalizations, partner buyouts and capital
infusions; and acquires joint venture, limited partner and
co-investment interests as principals. Madison invests only in
secondary transactions and focuses solely on existing properties
and portfolios in the U.S., U.K., and Western Europe. Madison
has offices in New York,
London and Frankfurt, Germany, where the firm operates
under the name of Madison Real Estate Beteiligungsgesellschaft
mbH.
Safe Harbor
DDR Corp. 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 supply 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; redevelopment and construction activities may not
achieve a desired return 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; the success of our deleveraging strategy; and any
impact or results from the Company's portfolio transition or any
change in 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,
2016. The Company undertakes no obligation to publicly
revise these forward-looking statements to reflect events or
circumstances that arise after the date
hereof.
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SOURCE DDR Corp.