DDR is funding the deal with $300 million from the proceeds of recent shopping center sales and the assumption of about $660 million in debt. The rest of the acquisition financing will come from additional asset sales, new debt financing and private equity. DDR will also discuss with joint venture partner Macquarie DDR Trust the possibility of investing in the centers.
The portfolio is 97% leased, and tenants in the centers include the three Gap chains, Kmart, Sam's Club and Wal-Mart. "This acquisition provides us with an opportunity with which to strengthen our relationships with US retailers interested in expanding into Puerto Rico or enhancing their existing presence," says Scott Wolstein, DDR's chairman and CEO, in a statement.
The centers DDR is acquiring are in the cities of Arecibo, Carolina, Cayey, Fajardo, Guayama, Humacao, Isabela, San German, San Juan and Vega Baja. They range in size from 132,383 sf to 711,379 sf.
DDR is not the only US shopping center owner to recently enter the territory. In May Simon Property Group acquired its first mall in Puerto Rico, the 1.1 million-sf Plaza Carolina, a center outside of San Juan, from the California Public Employees' Retirement System and the State of Michigan Treasury for $309 million.
DDR owns about 460 centers in 44 states totaling 102 million sf. Last week the company announced plans to develop $437.6 million of new shopping centers in the United States between now and 2006.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
