Developers Diversified Realty, American Industrial Properties Ink Take-Over Plan

DALLAS-Developers Diversified Realty Corp., headquartered in Cleveland, tomorrow will issue a list of properties being sold to finance its takeover of Irving, TX-based American Industrial Properties.

Thirty-one of the Dallas-area AIP REIT’s 150-building portfolio will be sold to client accounts managed by Lend Lease Real Estate Investments Inc. According to preliminary information in a press release issued today, the gross purchase price, including assumed debt, totals $292.5 million. In addition, an office building is being sold to a third party for a gross purchase price of about $55 million.

The merger will be discussed in depth in a conference call being planned for next week, GlobeSt.com has been told. The pact also calls for a DDR subsidiary to acquire all outstanding AIP stock for $13.74 per share in a buy being funded solely by the planned property sales. DDR already owns 46% of the Texas REIT. Under the signed agreement, other AIP shareholders also will get $13.74 per share, 9.9% more than over AIP’s closing share price of $12.50 posted yesterday. The amount being paid to AIP shareholders could be affected by operations prior to the merger’s closing, transaction expenses and closing adjustments. AIP had made a 22-cents per share cash for its third-quarter operation.