DDR Provides Update and Expands Strategic Redevelopment Initiative
in Puerto Rico
BEACHWOOD, Ohio, Jan. 16, 2013 /PRNewswire/ -- DDR Corp.
(NYSE: DDR) is pleased to announce the successful completion and
further expansion of redevelopment activity at four prime assets in
Puerto Rico. As a result of strong
tenant demand and the successful execution of previously announced
projects, DDR has expanded its redevelopment program on the island
from $50 million to $90 million.
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"Increased demand for quality retail space in this
supply-constrained market has created unique value-add
opportunities in many of our most productive assets," said
Paul Freddo, senior executive vice
president of leasing and development for DDR. "By executing
our strategic redevelopment plan, we are creating attractive
opportunities for our key domestic tenants to establish or expand
their presence on the island."
The following projects highlight DDR's redevelopment initiative
in Puerto Rico:
Plaza del Sol, a 690,000
square-foot enclosed mall anchored by Walmart, Home Depot, Bed Bath
& Beyond, Caribbean Cinemas and Old Navy, features a new 10,500
square-foot food court which was relocated from the lower level to
the upper level of the mall. With this relocation, DDR has improved
the merchandising offering and credit quality of food court
tenants, and will add 25,000 square feet of new in-line retail
space through the highly trafficked lower level corridor to replace
the former food court. With its center court location, DDR is
excited to introduce several new best-in-class tenants including
Victoria's Secret, Bath & Body
Works, Claire's, Sketchers and Aeropostale.
Phase two of Plaza del Sol's redevelopment will include the
construction of approximately 137,000 square feet of new GLA to
accommodate the expansion of a key anchor as well as construction
of additional junior anchor boxes with an expected completion in
the Fall of 2014.
At Rexville Plaza, a 131,000 square-foot community center, the
Company has successfully completed the addition of a new Marshalls
and CVS, which replaced an underperforming Pueblo
Supermarket. By proactively terminating a lease with an
underperforming tenant, the Company has increased NOI by more than
10%, improved the credit quality of cash flow and created the
catalyst for the consolidation of two small shop units to
accommodate a new Anna's Linens and the lease up of adjacent retail
space.
The transformation at Plaza del Norte, a 680,000 square-foot
enclosed mall anchored by Walmart, Sears, JCPenney, T.J.Maxx and Rooms to Go, includes the
consolidation of three vacant small shop units to accommodate a new
PetSmart as well as a new Caribbean Cinemas theater on the upper
level. Through these renovations and improvements, DDR was able to
attract a variety of new retailers, including Shoe Carnival,
Carter's, Journey's Kidz, Crocs, Van
Heusen, Ecko Unlimited and Robert Wayne Footwear. Additional
value creation will come from a new outparcel for Krispy Kreme,
which is expected to open in the Fall of 2013.
The redevelopment of Plaza Fajardo, a 250,000 square-foot power
center anchored by Walmart and Econo Supermarket, will include the
construction of two new box spaces for PetSmart and Shoe Carnival,
both of which are expected to open in the Fall of 2013. These new
stores represent PetSmart's fifth and Shoe Carnival's third
location in a DDR center on the island, highlighting the Company's
ability to facilitate the expansion of top domestic tenants into
the Puerto Rico market.
About DDR
DDR is an owner and manager of 459 value-oriented shopping
centers representing 116 million square feet in 39 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.
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, 2011, as amended.
The Company undertakes no obligation to publicly revise these
forward-looking statements to reflect events or circumstances that
arise after the date hereof.
SOURCE DDR Corp.