Cleveland, OH-based shopping center REIT, Developers Diversified Realty Corporation (NYSE: DDR
), has received approval from the unit holders of Macquarie DDR Trust (MDT) regarding the redemption of DDR's interest in the MDT US LLC joint venture. As a result, a 100% interest in three assets has been transferred to DDR in exchange for its 14.5% ownership stake in the joint venture, plus a $1.6 million cash payment has been made to the DDR Macquarie Fund.
The three shopping centers transferred to DDR include the 353,000-square-foot Perimeter Pointe in Atlanta, which is anchored by Stein Mart, Babies R Us, Sports Authority, L.A. Fitness, Office Depot and U.A. Theatre; the 327,000-square-foot Towne Center Prado in Marietta, GA, which is anchored by Publix, Stein Mart, and Ross Dress for Less; and the 197,000-square-foot Lake Brandon Plaza in Brandon, FL, which is anchored by Publix, Babies R Us, and JoAnn Fabrics.
As part of this transaction, DDR repaid $17 million of mortgage debt on the two Georgia centers, leaving $48 million in debt remaining on the properties. Lake Brandon Plaza is unencumbered. DDR continues to earn fees to actively lease and manage the remaining assets in the DDR Macquarie Fund.
David Oakes, Senior Executive Vice President of Finance and Chief Investment Officer for DDR said, "this transaction simplifies our structure and gives us 100% ownership interest in three high-quality, prime assets. Most importantly, the transaction is consistent with our goals of simplifying our structure, lowering leverage and eliminating near-term debt maturities."
This article appears in CoStar's Retail News Roundup: October 25-31, 2009
This week in the Retail Roundup, CoStar reports on expansions or new concepts
at Wal-Mart and 77kids; closings, cutbacks, defaults, or bankruptcy news
at Opus, Supervalu and Westgate Mall; acquisition, merger, loan, sale, or IPO activity
at DDR and Macquarie, Weingarten and Jamestown, and Walgreens; new retail development news in NY, NC, MA, CT, and PA
; personnel or corporate announcements
at Richard E. Jacobs Group and X Team; sustainability and green building news
at JC Penney; and more.