SOURCE: Developers Diversified

September 10, 2007 09:54 ET

Developers Diversified Announces Sale of Third Value-Add Shopping Center to Macquarie DDR Trust

CLEVELAND, OH--(Marketwire - September 10, 2007) - Developers Diversified (NYSE: DDR), the leading owner, manager and developer of market-dominant shopping centers in the U.S., today announced the sale of Lake Walden Square to the Company's joint venture with Macquarie DDR Trust (ASX: MDT) ("MDT"), an Australian Listed Property Trust sponsored by Macquarie Bank Limited (ASX: MBL), an international investment bank and leading advisor and manager of specialized real estate funds in Australia. The aggregate purchase price for the property was $23 million, which equates to a cap rate of 4% on leases in place. The asset was recently acquired at equivalent pricing by Developers Diversified as part of its acquisition of Inland Retail Real Estate Trust, Inc. Developers Diversified sold two other value-add assets to MDT in August 2007.

Lake Walden Square is a 262,000 square foot shopping center located in suburban Tampa, Florida. The property, which is anchored by Sweet Bay Supermarkets, is 50% occupied and offers redevelopment potential during the next several years.

Developers Diversified retains a 14.5% ownership interest in Lake Walden Square and remains responsible for all day-to-day operations of the property. The Company receives ongoing fees for property management, leasing and construction management. Developers Diversified will also receive a promoted interest above a 10% leveraged IRR, which will be calculated based on the appraised value of the asset at stabilization. The asset was one of seven value-add properties subject to a right of first offer between Developers Diversified and MDT.

David Oakes, Developers Diversified's Executive Vice President of Finance and Chief Investment Officer, commented, "We are pleased to continue to grow our relationship with MDT and to help satisfy their desire to undertake more value-added investments. This transaction further strengthens our balance sheet and is consistent with both companies' investment strategies."

Developers Diversified owns and manages approximately 740 retail operating and development properties in 45 states, plus Puerto Rico and Brazil, totaling approximately 155 million square feet. The Company is a self-administered and self-managed real estate investment trust (REIT) operating as a fully integrated real estate company which acquires, develops and leases shopping centers. Additional information about Developers Diversified is available on the Internet at http://www.ddr.com.

Developers Diversified Realty Corporation considers portions of this information to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21 E 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 the results of the Company 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 a major tenant, constructing properties or expansions that produce a desired yield on investment or inability to enter into definitive agreements with regard to our financing arrangements or our failure to satisfy conditions to the completion of these arrangements. For more details on the risk factors, please refer to the Company's Form on 10-K as of December 31, 2006.

Contact Information

  • Contact:
    Michelle M. Dawson
    Vice President of Investor Relations
    Developers Diversified Realty
    Main: (216) 755-5500
    E-mail: Email Contact