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Cedar Closes On $90M Portfolio for New JV

PORT WASHINGTON, NY-The five Eastern Pennsylvania shopping centers aggregate 353,000 sf and are among the nine Cedar properties in which Homburg is taking an 80% stake.

By Marita Thomas | Updated on April 06, 2007

PORT WASHINGTON, NY-Cedar Shopping Centers Inc. has closed on its previously announced acquisition of five Giant supermarket-anchored shopping centers in Eastern Pennsylvania from Harrisburg-based Caldwell Development Co. The price is $90 million , and the centers aggregate 353,000 sf.

These are five of the nine shopping centers the locally based REIT expects to include in its recently announced joint venture with a subsidiary of Halifax, Nova Scotia-based Homburg Invest Inc. Under the JV agreement, previously announced by GSR, Homburg is taking an 80% stake in the properties, and Cedar is retaining a 20% stake. It also retains management, leasing and construction responsibilities, which, in the case of these five, will be handled by its New Cumberland, PA office.

These are included in the JV at values equal to their respective purchase prices, which are not delineated separately. The centers are fully leased. Carlisle, PA-based Giant Food Stores LLC, a subsidiary of the Ahold Group, holds long-term leases at all five, and it accounts for 85% of the portfolio’s total rental income.

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