DDR Buys Stake in 30 Shopping Centers for $1.46 Billion
Earlier this month, DDR Corp., owner of shopping centers that include big-box retailers, agreed to purchase the portion of 30 retail centers from Blackstone Group for $1.46 billion. Blackstone Real Estate Partners VII and DDR own 44 shopping centers in a joint venture.
The two companies acquired all 44 shopping centers together last June, in a deal that valued the properties at $1.43 billion, including debt. Blackstone owned 95% of the venture that purchased the portfolio from EPN Group.
The venture put fresh capital into some of the properties and succeeded in raising the total occupancy rate from about 90% to around 92%.
This deal is expected to close in the fourth quarter, and will transfer the Blackstone fund’s 95% equity ownership in 30 of the shopping centers to DDR. Blackstone will retain 95% interest in the 14 properties not being acquired, and DDR will keep its 5% stake, said DDR.
The portfolio being purchased includes 11.8 million square feet of power centers located in the top 40 U.S. MSA’s. Centers acquired by DDR include Shoppers World in Boston, Woodfield Village Green in Chicago, and Fairfax Towne Center in Washington, D.C.
Blackstone has gotten back all the money it initially put into the deal by selling its stake.