Officials with the Cleveland-based buyer say they are currently negotiating joint-venture deals for $1.5 billion in Inland assets representing 65 shopping centers in major metropolitan areas in the Southeast. The Inland acquisition, a joint venture with TIAA-CREF, will give the partners more than 300 community and neighborhood shopping centers and single tenant, net-leased retail properties totaling about 43.6 million sf. That sale is set to close later this month.
The company, which owns and manages more than 500 retail and development properties totaling 118 million sf, said it also plans to sell off another portfolio of 60 to 70 non-core assets owned by both Inland and DDR. That deal, which is expected to generate between $600 million and $700 million, is set to close in the second or third quarter of 2007.
In a conference call with analysts, DDR's chairman and CEO Scott Wolstein says the asset realignment gives the firm a portfolio filled with dominant retail centers and deflects "a significant portion" of the proceeds generated into higher yielding investments. The acquisition and sale are just part of DDR's rapid growth in 2006.
In October, DDR paid $147.5 million to acquire a 50% joint-venture interest in Sonae Sierra Brazil, a Sao Paulo real estate company that owns interests in nine retail properties and a property management company in Brazil. That portfolio is currently valued at $56 million more than the acquisition price, Wolstein says.
Also during 2006, DDR completed eight expansions and redevelopment projects in the US and Puerto Rico at a cost of $73.4 million. In addition, it began construction on seven other shopping centers totaling four million sf and acquired six assets for $485 million through its Coventry II Joint Venture.
The firm plans to begin construction on two shopping centers totaling 1.1 million sf in California and Florida in 2007, and it currently has four more shopping centers under construction with its joint venture partners.
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