EPN buys stake in Macquarie DDR Trust

Northbrook, Ill. EPN GP, LLC said Wednesday it has invested $116 million in Macquarie DDR Trust, an Australian publicly traded trust.

EPN GP, which is a joint venture of Elbit Plaza USA and Eastgate Property LLC, said the trust will be renamed EDT Retail Trust and the transaction is expected to close on June 18, giving EPN a 48% ownership interest in the Trust.

The Trust holds interests in 78 operating retail properties valued US$1.5 billion as of December 31, 2009. The portfolio comprises approximately 460 tenants and 13.2 million sq. ft. of mainly community shopping centers and single-box retail properties across the major regions of the United States, with assets located in 23 states.

Key to the transaction is EPN’s acquisition from Macquarie Group of its 50% interest in the entity, with the other 50% owned by Developers Diversified Realty Corp. of Beachwood, Ohio.

Developers Diversified will continue to lease and manage the Trust’s properties.

Alex Berman, EPN’s CEO, said, “We are excited to be making a significant investment in EDT with its high-quality portfolio of retail assets. In joint management with DDR, a top-notch asset and property manager, we look forward to further enhancing the portfolio performance and its value.”