BEACHWOOD, Ohio, Oct. 1, 2013 /PRNewswire/ -- DDR Corp. (NYSE: DDR) announced the closing of its previously announced acquisition of a portfolio of 30 prime power centers from its existing joint venture with Blackstone Real Estate Partners VII L.P. ("Blackstone"), as well as the settlement of its forward equity sale. The investment was funded through a combination of proceeds from the issuance of new common equity and unsecured debt, preferred equity and mezzanine loan repayments, and the assumption of existing mortgage debt.
DDR acquired Blackstone's 95% interest in 30 open-air, value oriented power centers previously held in joint venture. The 95% leased portfolio is comprised of 11.8 million square feet of GLA and features high credit quality tenants typically found in DDR's power centers such as Walmart, Target, T.J. Maxx, Kohl's, PetSmart, Bed Bath and Beyond, and Dick's Sporting Goods. The portfolio features very strong trade area demographics with an average household income of $91,000 and population of 543,000 people. The acquisition further simplifies the Company's structure by reducing joint venture assets by 20% and enhances EBITDA quality through the conversion of shorter-term fee and interest income into higher multiple, long-term property level cash flow with strong growth potential.
"This investment further demonstrates our commitment to improve the quality of the prime portfolio while simplifying our story and enhancing our earnings composition. Our deep knowledge of the assets reduces risk and gives us confidence in the long term growth profile of the assets. We thank Blackstone for being outstanding partners and greatly value our continued relationship," said Daniel B. Hurwitz, chief executive officer of DDR.
About DDR Corp. DDR is an owner and manager of 435 value-oriented shopping centers representing 115 million square feet in 39 states, Puerto Rico and Brazil. The Company's assets are concentrated in high barrier-to-entry markets with stable populations and high growth potential and its portfolio is actively managed to create long-term shareholder value. DDR is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol DDR. Additional information about the company is available at www.ddr.com, as well as on Twitter, LinkedIn, Facebook and Pinterest.
Safe Harbor DDR considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company's expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, local conditions such as oversupply of space or a reduction in demand for real estate in the area; competition from other available space; dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant; constructing properties or expansions that produce a desired yield on investment; our ability to buy or sell assets on commercially reasonable terms; our ability to complete acquisitions or dispositions of assets under contract; our ability to secure equity or debt financing on commercially acceptable terms or at all; our ability to enter into definitive agreements with regard to our financing and joint venture arrangements or our failure to satisfy conditions to the completion of these arrangements; and the success of our capital recycling strategy. For additional factors that could cause the results of the Company to differ materially from those indicated in the forward-looking statements, please refer to the Company's Form 10-K for the year ended December 31, 2012, as amended. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
SOURCE DDR Corp.