PREI is footing most of the bill, providing 80% of the money to close the deal. The investment is being made on behalf of PRISA II, a $1.5 billion open-end commingled equity fund it manages for institutional investors.

DDR, which has a 79% stake in Coventry, is providing the remaining 20%. DDR is also buying a 15th retail property from Burnham in a separate deal. The latter's board of directors has okayed the deal, but shareholders still have to approve it.

Under the terms of the deal, DDR will collect management fees for operating and leasing the properties, which are mostly in the San Francisco and Los Angeles areas, as well as Washington and Oregon. DDR will also receive a promoted interest above 10% threshold returns to limited partners.

"The geographic diversification of the properties, current occupancy and competitive position in their respective markets makes this a solid investment opportunity," says Roger Pratt, managing director of PREI and senior portfolio manager of PRISA II.

"This is an opportunity to utilize our access to private capital to selectively acquire a portfolio of assets," adds DDR chairman/CEO Scott Wolstein. "It also represents a significant advancement in the activities of the DDR/PREI/Coventry program."

The portfolio is a mix of community shopping centers, supermarket-anchored neighborhood centers and specialty centers. Among the anchor tenants at the various properties are Wal-Mart, Circuit City, Home Depot and Michael's.

Officially, the properties are being acquired through a joint venture called the Retail Value Investment Program. The venture was created by PREI and DDR in 1998 to invest in opportunistic retail property transactions, and Coventry was set up as the dedicated operating partner.