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Australia Trust Acquires Two Retail Centers for $64M

CLEVELAND-Locally based Developers Diversified Realty sells an 85.5% interest in two community shopping centers to Macquarie DDR Trust, which plans to acquire several additional retail properties from DDR's portfolio in 2005.

By Brian K. Miller | Updated on January 18, 2005

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CLEVELAND-Developers Diversified Realty has sold a 14% interest in two community shopping centers to Macquarie DDR Trust for about $64 million. The centers are located in Aurora, CO, and Irving, TX.The property in Aurora, a suburb of Denver, is Pioneer Hills, a 572,262-sf community center that was acquired for $31.5 million. The center is anchored by Wal-Mart Supercenter (not included in sale) and Home Depot (not included in sale), as well as Bed Bath & Beyond, Office Depot and PetsMart. MacArthur Marketplace in Irving, a suburb of Dallas, is a 249,000-sf property anchored by a Wal-Mart Supercenter (not included in sale), Sam’s Club (not included in sale), Kohl’s, Marquee Cinemas, OfficeMax and PetsMart. As part of the transaction, DDR will receive its share of ongoing fees for property management, leasing and construction management, plus nominal one-time fees for financing and due diligence. The company will also receive base asset management fees and incentive fees based on the overall performance of MDT relative to the S&P/ASX 200. MDT is an Australia listed property trust sponsored by Macquarie Bank Limited, an international investment bank and leading advisor and manager of specialized real estate funds in Australia. DDR plans to sell several additional retail properties to the trust in 2005, according to a prepared statement.The MDT joint venture now owns 27 community center assets across the US totaling over 12 million sf. The MDT joint venture portfolio represents approximately $1.6 billion in aggregate value, which DDR says includes a $70-million increase in valuation based on recent appraisals.

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