SOURCE: Developers Diversified Realty

October 05, 2005 08:01 ET

Developers Diversified Realty Completes Disposition of Office and Industrial Portfolio

CLEVELAND, OH -- (MARKET WIRE) -- October 5, 2005 -- Developers Diversified Realty Corporation (NYSE: DDR) announced it has completed its $177 million disposition of 25 office and industrial properties to Brascan Real Estate Opportunity Fund (BREOF), an investment fund launched by Brookfield Asset Management Inc. (NYSE: BAM) (TSX: BAM) (currently Brascan Corporation (NYSE: BNN) (TSX: BNN)). The $177 million sale price is comprised of $170 million in cash and a contingent payment of $7 million in subordinated equity, based on the portfolio's performance, including proceeds from a potential disposition.

As previously announced, proceeds from the sale will be used to pay down Developers Diversified's revolving credit facility, which was used to fund Developers Diversified's acquisition of its interest in the real estate underlying a portfolio of open and operating Mervyns stores, and for general corporate purposes.

Developers Diversified currently owns or manages over 500 operating and development retail properties in 44 states, plus Puerto Rico, comprising approximately 114 million square feet. Developers Diversified is a self-administered and self-managed real estate investment trust (REIT) operating as a fully integrated real estate company which acquires, develops and manages shopping centers. Additional information about Developers Diversified is available on the Internet at http://www.ddr.com.

Brascan Real Estate Opportunity Fund was established by Brookfield Asset Management to invest opportunistically in commercial real estate in North America. Brookfield Asset Management is a specialist asset management company, with a focus on property, power and infrastructure assets. The Company has $40 billion of assets under management, including 70 premier office properties and over 130 power generating plants. The Company is listed on the New York and Toronto stock exchanges under the symbol BNN. For more information, please visit the Company's web site at www.brascancorp.com

Developers Diversified 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, 2004.

Contact Information

  • Contact:
    Michelle M. Dawson
    Vice President - Investor Relations
    Developers Diversified
    216.755.5455