DDR completes $699 million of transactions in Q3

Beachwood, Ohio – During third quarter 2014, DDR Corp. closed on the acquisition of eight prime power centers and the sale of seven operating assets and two land parcels, totaling $699 million of executed transactions. Seven of the eight power centers that the company acquired were purchased for $377 million at DDR's share from a joint venture formed with Blackstone Real Estate Partners VII L.P. in August 2013.



The acquisition increases DDR's exposure to prime markets such as Los Angeles, San Diego, Washington, D.C., and Portland. Six of the seven power centers have a grocery anchor, and more than 40% of the portfolio's gross leasable area (GLA) comes from Target, Walmart, Wegmans, Kohl's, Ross Dress for Less, Dick's Sporting Goods, T.J.Maxx, Bed Bath & Beyond, The Fresh Market, and Ulta Beauty.



The eighth asset acquired by the company in the third quarter is an urban power center located in Philadelphia that is anchored by Bed Bath & Beyond and PetSmart, and features a trade area population of almost 900,000 people which is more than double that of DDR's prime average. The company is in advanced discussions with a national junior anchor to fill the one remaining vacancy in the center. DDR purchased the asset for $31.5 million.



In addition, the company remains under contract to acquire the previously announced portfolio from American Realty Capital Properties Inc. in a joint venture with Blackstone, expected to close in October 2014.



During the third quarter, DDR also sold seven operating assets, two land parcels, and redeemed its share of the preferred equity in BRE DDR Retail Holdings II for an aggregate $290 million at the company's share. DDR has an additional 39 operating assets under contract for sale totaling $207 million at the company's share. Year to date, DDR has sold $826 million of non-prime assets at the Company's share.



"We are pleased to announce another quarter of transactional activity that showcases our ability to source off-market transactions given today's robust pricing environment,” said David J. Oakes, president and CFO of DDR. “Our portfolio upgrade has been dramatic, and we look forward to continuing this transformation as opportunities arise."