Texas properties account for about 43% of the 39-property disposition list. Under the terms of yesterday's agreement, a wholly owned subsidiary of DDR will merge with AIP, resulting in all stock of AIP common shareholders--other than DDR--being bought by AIP at $13.74 per share. The stock purchase will be funded by the sale of 31 industrial assets to an affiliate of Lend Lease Real Estate Investments and an office building sale to a third party. DDR will end up AIP's sole shareholder in the transaction and in control of AIP's remaining 39-property portfolio. DDR currently owns 46% of AIP's outstanding stock.

DDR intends to maintain AIP as a private REIT while setting the stage for a future disposition plan. Of the properties on today's sale list, 70% are light industrial, 21% are office and 9% are retail locations. All five industrial properties in Ohio originally had been owned by DDR. The transaction also places 23.7 acres of raw land in Texas and Virginia under DDR ownership.

At closing, the properties will be 89% occupied, based upon contracted leases and discounting additional lease-ups, and results in a $28.6-million NOI. Overall, the 39 properties are subject to about $134 million in debt, with annualized interest totaling about $10.5 million. DDR's cost basis in AIP totals about $134 million.