BEACHWOOD, OH /PRNewswire/ --DDR Corp. (NYSE: DDR) announced that it has acquired three prime shopping centers for $110 million and disposed of $59 million of non-prime assets in the third quarter.
DDR continues to successfully recycle capital from asset sales into the acquisition of prime shopping centers, and has completed $150 million of acquisitions and $166 million of dispositions year to date.
Consistent with previously announced acquisitions, all three third quarter additions have a demographic profile and projected compounded annual growth rate that will enhance the existing DDR prime portfolio metrics and continue to improve overall company asset quality.
DDR acquired two prime assets in Charlotte, North Carolina, Cotswold Village (top left photo) and The Terraces at SouthPark (middle right photo), for $85 million and one prime asset, Chapel Hills East (middle left photo), in Colorado Springs, Colorado for $25 million.
The assets total 500,000 square feet of gross leasable area and range between 96% and 100% leased.
In addition, the assets are occupied by many high quality retailers typically found in DDR shopping centers including Whole Foods, Marshalls, PetSmart, Best Buy, Harris Teeter, ULTA, Old Navy, and DSW.
With the inclusion of the recently acquired assets, DDR expanded its presence in the Charlotte trade area to nine prime assets representing 2.2 million square feet and the Denver trade area to nine prime assets representing 2.8 million square feet.
In connection with these acquisitions, DDR assumed three existing mortgage loans as follows:
- Cotswold Village - $50.8 million at 5.83%, maturing in 2016
- The Terraces at SouthPark - $6.6 million at 5.72%, maturing in 2012
- Chapel Hills East - $9.6 million at 5.24%, maturing 2021
- As previously announced in the third quarter, and further enhancing the Company's portfolio, DDR is also under contract to acquire Polaris Towne Center (lower right photo) in Columbus, Ohio, for $80 million.
- Polaris is a 700,000 square foot prime asset anchored by Target, Lowe's, Kroger, Best Buy, and TJ Maxx. It is anticipated that this transaction will close in the fourth quarter of 2011.
The Company disposed of ten non-prime assets and seven land parcels during the quarter for aggregate proceeds of approximately $59 million, all of which was the Company's share.
An additional $209 million of assets are currently under contract for sale, of which the Company's share is $196 million.
Year to date, the Company has generated gross proceeds of $214 million from asset sales, of which the Company's share is $166 million. Since 2007, DDR has completed $2.3 billion of dispositions of primarily non-prime assets.
Daniel B. Hurwitz (top right photo), president and chief executive officer of DDR, commented, "We are pleased with the continued execution of our capital recycling strategy and are very confident that these prime acquisitions will enhance our compounded annual growth rate and net asset value.
“Our successful strategy of funding acquisitions with disposition proceeds will continue and obviates the need to access common equity to support portfolio enhancement initiatives."
Additional information about the company is available at www.ddr.com.
CONTACT: Marty Richmond, Vice President, Marketing and Corporate Communications, +1-216-755-5500, or Samir Khanal, Senior Director of Investor Relations, +1-216-755-5500
Web Site: http://www.ddr.com/
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