Developers Diversified Announces Impact of Private Placement and Proposed Recapitalization of Macquarie DDR Trust

CLEVELAND, April 22 /PRNewswire-FirstCall/ -- Developers Diversified Realty Corporation (NYSE: DDR) (DDR) announced today that Macquarie DDR Trust ("MDT" or "Trust") has completed a A$9.5 million private placement with EPN GP, LLC ("EPN") and that MDT plans to conduct a pro rata entitlement offer to raise approximately A$200 million for debt reduction.

Upon the closing of the entitlement offering, EPN will be acquiring Macquarie Group Limited's 50% interest in Macquarie DDR Management LLC ("US Manager"), which is the operating manager for the Trust. As a result, EPN will become DDR's partner in the US Manager.

In October of 2009, DDR redeemed its interest in MDT's primary operating company (the "US LLC"), and DDR retained the property management and leasing contracts for the assets. DDR does not anticipate that the transactions announced today will have any impact on the operation of the assets. DDR will continue to provide all property management and leasing services for MDT's assets and continue to receive its contractual fees for those services.

David Oakes, Developers Diversified's chief financial officer, commented, "We are pleased that MDT has been able to source new capital from a knowledgeable investor, and we look forward to working closely with EPN to manage a better capitalized Trust and to continue to lease and manage the many prime assets owned by the Trust."

Alex Berman, EPN's chief executive officer, commented, "EPN is very pleased to enter into this new investment venture and looks forward to managing the Trust in partnership with DDR."

About EPN

EPN GP, LLP ("EPN") is a real estate investment venture jointly formed by Elbit Plaza USA ("Elbit Plaza") and Eastgate Property LLC ("Eastgate"). EPN intends to take advantage of real estate opportunities in the United States, primarily in the retail sector, through direct acquisitions and joint ventures with leading real estate operators and owners of relevant assets or portfolios.

Elbit Plaza is a joint venture between Elbit Imaging Ltd. ("Elbit") and Plaza Centers N.V. ("Plaza"). Elbit is a global diversified conglomerate dual listed on the Tel Aviv Stock Exchange and NASDAQ Global Select Market (EMITF), which is active in several principal fields including shopping and entertainment centers.  Plaza is a leading emerging markets developer of shopping and entertainment centers, which maintains dual listing on the Main Board of the London Stock exchange (PLAZ) and on the Warsaw stock exchange (PLZ). For more information on Elbit and Plaza visit www.elbitimaging.com and www.plazacenters.com.

Additional Details

A press release announcing specific details regarding the private placement and recapitalization can be found on MDT's website: www.macquarie.com.au/macquarieddr

Developers Diversified owns and manages approximately 640 retail operating and development properties in 44 states, Brazil, Canada and Puerto Rico. Totaling more than 140 million square feet, the Company's shopping center portfolio features open-air, value-oriented neighborhood and community centers, mixed-use centers and lifestyle centers located in prime markets with stable populations and high-growth potential. Developers Diversified is the largest landlord in Puerto Rico and owns a premier portfolio of regional malls in and around Sao Paulo, Brazil. Developers Diversified is a self-administered and self-managed REIT operating as a fully integrated real estate company. Additional information about the Company is available on the Company's website at www.ddr.com.

SOURCE Developers Diversified Realty Corporation