BEACHWOOD, Ohio, Oct. 1, 2014 /PRNewswire/ -- DDR Corp.
(NYSE: DDR) today announced that during the third quarter, it
closed on the acquisition of eight prime power centers and the sale
of seven operating assets and two land parcels, totaling
$699 million of executed
transactions.
(Logo: http://photos.prnewswire.com/prnh/20131217/DDRLOGO
)
Seven of the eight power centers that the Company acquired were
purchased for $377 million at DDR's
share from a joint venture formed with Blackstone Real Estate
Partners VII L.P. ("Blackstone") in August
2013. The acquisition increases DDR's exposure to prime
markets such as Los Angeles,
San Diego, Washington, D.C., and Portland. Six of the seven power centers have
a grocery anchor, and over 40% of the portfolio's gross leasable
area (GLA) comes from Target, Walmart, Wegmans, Kohl's,
Ross Dress for Less, Dick's Sporting
Goods, T.J.Maxx, Bed Bath &
Beyond, The Fresh Market, and Ulta Beauty.
The eighth asset acquired by the Company in the third quarter is
an urban power center located in Philadelphia that is anchored by Bed Bath
& Beyond and PetSmart, and features a trade area population of
almost 900,000 people which is more than double that of DDR's prime
average. The Company is in advanced discussions with a national
junior anchor to fill the one remaining vacancy in the center. DDR
purchased the asset for $31.5
million.
In addition, the Company remains under contract to acquire the
previously announced portfolio from American Realty Capital
Properties, Inc. (NASDAQ: ARCP) in a joint venture with Blackstone,
expected to close in October
2014.
During the third quarter, DDR also sold seven operating assets,
two land parcels, and redeemed its share of the preferred equity in
BRE DDR Retail Holdings II for an aggregate $290 million at the Company's share. DDR has an
additional 39 operating assets under contract for sale totaling
$207 million at the Company's share.
Year to date, DDR has sold $826
million of non-prime assets at the Company's share.
"We are pleased to announce another quarter of transactional
activity that showcases our ability to source off-market
transactions given today's robust pricing environment. Our
portfolio upgrade has been dramatic, and we look forward to
continuing this transformation as opportunities arise," said
David J. Oakes, president and chief
financial officer of DDR.
About DDR Corp.
DDR is an owner and manager of 385 value-oriented shopping centers
representing 106 million square feet in 39 states and Puerto Rico. 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, as well
as on Twitter, LinkedIn and Facebook.
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; 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, including the ability of
the joint venture between DDR and Blackstone to successfully
complete the acquisition of the portfolio from American Realty
Capital Properties, Inc.; 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, 2013, 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.