Macquarie / Developers Diversified Joint Venture Entrusts HFF With $1.9 Billion Shopping Center Portfolio
Macquarie DDR Trust (ASX:MDT), a joint venture between Aussie-based Macquarie and U.S. retail REIT, Developers Diversified Realty Corporation (NYSE:DDR
), put a portfolio of 52 U.S. shopping centers up for sale.
As of Dec. 31, 2008, MDT said the portfolio of assets were valued at $1.9 billion, which accounts for 70.4% of the Trust's total asset value. MDT first foreshadowed this portfolio listing when on Mar. 19, it said MDT's intentions were to "reorganize and simplify" its ownership in certain joint venture interests. The trust is considering purchasers interested in a limited 85.5% ownership interest or 100% interest in the portfolio.
The portfolio totals 12.5 million square feet, has an average occupancy of 88.5%, and is spread across 20 states. Comprised primarily of community shopping centers, the portfolio's major tenants include Walmart, BJ’s Wholesale Club, Bed Bath & Beyond, Best Buy, T.J. Maxx, Kohl’s and Dick’s Sporting Goods. Click here to download the list of shopping centers included in the portfolio.
Holliday Fenoglio Fowler ("HFF"), along with Macquarie Capital Advisers and UBS Securities, serve as co-advisors marketing this portfolio for sale. HFF executive managing director John Pelusi, senior managing directors Barry Brown and Doug Hazelbaker and managing director Lynn De Marco are leading the HFF investment sales team on behalf of the seller.
Macquarie is also in the process of dissolving its joint venture with Jacksonville, FL-based shopping center REIT, Regency Centers (NYSE:REG
). In late January, Macquarie said Inland American Real Estate Trust would acquire 30 of the 35 shopping centers held under the joint venture, for $427 million.
This story appears in CoStar's Retail News Roundup: Apr. 12 to 18, 2009, a weekly column by CoStar senior news editor, Sasha Pardy.
This week in the Retail Roundup, CoStar reports on expansions or new concepts at Red Mango and Giant Food Stores; new retail development news in AZ and NY; acquisition, merger, loan or sale activity at WP Realty, Macquarie DDR Trust, Highwoods and Lane4, Dividend Capital and ING Clarion; closings, cutbacks, defaults, or bankruptcies at Z Gallerie, Ultra Stores, General Growth, Bruno's Supermarkets, Starbucks, and Fatburger; personnel announcements at Equity One and Ramco, SRS Real Estate, RCS Real Estate Advisors, and Sperry Van Ness; sustainability or green building news at BrandsMart and Target; and more.