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.