DDR plans to acquire 307 centers in $6B deal
By STAN BULLARD11:35 am, October 23, 2006
Developers Diversified Realty Corp. (NYSE: DDR) plans to hike the size of its shopping center portfolio 37% with the proposed acquisition of Inland Retail Real Estate Trust Inc. of Oak Brook, Ill., in a $6.2 billion transaction.
Beachwood-based Developers Diversified intends to buy all of Inland’s shares for $14 each in the transaction and to assume $2.3 billion in debt, which it expects to repay as it closes the deal.
Acquiring Inland Retail (OTC: ZZILR.PK) would add 307 community shopping centers, neighborhood shopping centers and single-retailer properties to Developers Diversified’s portolio of owned or managed properties.
The deal also would bring 43.6 million square feet of selling space to Developers Diversified’s portfolio of owned and managed properties, which at present totals 118 million square feet.
Developers Diversified will not be going solo in this big deal. The company said in its announcement that a “major U.S. institutional investor” has agreed to acquire 67 of Inland Retail’s 116 community shopping centers for $3 billion. Developers Diversified did not identify the investor. However, the REIT said it will contribute 15% of the equity in the deal and will earn fees by continuing to manage and lease the properties.
Today’s announcement follows Developers Diversified’s announcement after the market closed last Friday that it would acquire a 50% stake in a portfolio of shopping centers in Brazil, its farthest move so far outside the United States.
Developers Diversified Realty Corp. (NYSE: DDR) plans to hike the size of its shopping center portfolio 37% with the proposed acquisition of Inland Retail Real Estate Trust Inc. of Oak Brook, Ill., in a $6.2 billion transaction.
Beachwood-based Developers Diversified intends to buy all of Inland’s shares for $14 each in the transaction and to assume $2.3 billion in debt, which it expects to repay as it closes the deal.
Acquiring Inland Retail (OTC: ZZILR.PK) would add 307 community shopping centers, neighborhood shopping centers and single-retailer properties to Developers Diversified’s portolio of owned or managed properties.
The deal also would bring 43.6 million square feet of selling space to Developers Diversified’s portfolio of owned and managed properties, which at present totals 118 million square feet.
Developers Diversified will not be going solo in this big deal. The company said in its announcement that a “major U.S. institutional investor” has agreed to acquire 67 of Inland Retail’s 116 community shopping centers for $3 billion. Developers Diversified did not identify the investor. However, the REIT said it will contribute 15% of the equity in the deal and will earn fees by continuing to manage and lease the properties.
Today’s announcement follows Developers Diversified’s announcement after the market closed last Friday that it would acquire a 50% stake in a portfolio of shopping centers in Brazil, its farthest move so far outside the United States.
posted by S. Dreznin at
1:47 PM
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