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DDR and Glimcher Realty Trust announce strategic asset swap

Columbus, Ohio -- Developers Diversified Realty and Glimcher Realty Trust announced Wednesday that the companies have entered into an agreement to swap two assets better aligned with the other’s operating platforms and strategies. 

DDR will sell Glimcher its open-air mall, Town Center Plaza, in Kansas City, Kan., and Glimcher will sell DDR its power center, Polaris Towne Center, in Columbus, Ohio.

The transaction is expected to close in the fourth quarter of 2011.

“We are excited about this transaction that not only enhances the quality of Glimcher’s mall portfolio but is also expected to be accretive to our earnings,” said Michael P. Glimcher, chairman and CEO of Glimcher.   

Town Center Plaza, which Glimcher will purchase from DDR for approximately $139 million, is a 650,000-sq.-ft. open-air mall anchored by Macy’s and Dick’s Sporting Goods and features Pottery Barn and Anthropologie.

“The simultaneous disposition of Town Center Plaza and acquisition of Polaris Towne Center is consistent with our strategic objective of simplifying our portfolio and focusing on what we do best,” said Daniel B. Hurwitz, president and CEO of DDR.

Polaris Towne Center, which DDR will purchase from Glimcher for approximately $80 million, is a 700,000-sq.-ft. market-dominant asset anchored by Target, Lowe’s, Kroger, Best Buy and TJ Maxx. Polaris Towne Center will be the seventh asset owned by DDR in the Columbus MSA.

*** ALERT: Glimcher Unethical Leasing & Business Practices

*** ALERT: Glimcher Unethical Leasing & Business Practices

If Glimcher changes their mind on a tenant, they makes it a normal business practice to defraud tenants out of construction allowances while tenants are then forced to battle out with sub-contractors and general contractors to stay afloat and avoid liens. They then swoop in to settle for pennies on the dollar with general contractors to regain spaces, and then sue tenants back in bad faith to recoup any expenses even after they re-lease, thus gaining undue enrichment by double-dipping.

This is how a developer gets their units built out with someone else's money at a significant savings. Those wise enough to negotiate leases properly and don't move in as a result until get paid still get sued by their $500 + per/hr attorneys. Those pressured to go in get stiffed and are out in the cold.
Many tenants have left and more leaving the development.
Leasing representative located at Scottsdale Quarter revealed inside information on how it's done.

Glimcher has hundreds of cases in litigation nationwide and many are just like this.

Stockholders, analysts and potential tenants beware.

© 2014