Developers Diversified Announces Redemption of Its Interest in Joint Venture with Macquarie DDR Trust

Developers Diversified Realty Corporation (NYSE: DDR) announced today that Macquarie DDR Trust unitholders have approved the redemption of Developers Diversified’s interest in the MDT US LLC joint venture and that the transaction has closed. A 100% interest in three high-quality assets was transferred to Developers Diversified in exchange for its approximate 14.5% ownership stake in the venture and a cash payment of $1.6 million to the DDR Macquarie Fund.

Details regarding the three shopping centers transferred to Developers Diversified are listed below.

    
      
        
          Shopping

          

Center

TotalSquareFeet

        
        
           
        
        
          Location
        
        
           
        
        
          

AnchorTenants

Population(5 mile)

AverageHH Income(5 mile)

Perimeter Pointe

353,000

Atlanta, GA

Stein Mart, Babies R Us,Sports Authority, L.A.Fitness, Office Depot,United Artists Theatre

220,609

$145,782

        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Towne Center Prado
        
        
        
        
          327,000
        
        
        
        
          

Marietta, GA(Atlanta MSA)

Publix, Stein Mart, RossDress for Less

        
        
        
        
          171,568
        
        
        
        
          $83,856
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Lake Brandon Plaza
        
        
        
        
          197,000
        
        
        
        
          

Brandon, FL(Tampa MSA)

Publix, CompUSA,Babies R Us, Jo-AnnStores

        
        
        
        
          186,029
        
        
        
        
          $72,532
        
      
    
    

Developers Diversified repaid $17 million of mortgage debt on the two Atlanta shopping centers as part of the redemption. These two centers are now encumbered by $48 million of first mortgage debt at an interest rate of LIBOR +3.5%, with a 2.0% LIBOR floor, and a maturity of April 2013. The Florida shopping center is unencumbered.

Developers Diversified remains the joint manager for the Trust and continues to actively lease and manage the remaining assets in the DDR Macquarie Fund and to earn fees for those services.

David Oakes, Senior Executive Vice President of Finance and Chief Investment Officer, commented, “We are pleased to announce the approval and closing of this redemption, which will provide both parties with enhanced financial flexibility as we both make progress on strengthening our balance sheets. For Developers Diversified, this transaction simplifies our structure and gives us 100% ownership interest in three high-quality, prime assets. Most importantly, the transaction is consistent with our goals of simplifying our structure, lowering leverage and eliminating near-term debt maturities.”

Developers Diversified owns and manages approximately 670 retail operating and development properties in 44 states, Brazil, Canada and Puerto Rico. Totaling more than 148 million square feet, the Company’s shopping center portfolio features open-air, value-oriented neighborhood and community centers, mixed-use centers and lifestyle centers located in prime markets with stable populations and high-growth potential. Developers Diversified is the largest landlord in Puerto Rico and owns a premier portfolio of regional malls in and around Sao Paulo, Brazil. Developers Diversified is a self-administered and self-managed REIT operating as a fully integrated real estate company. Additional information about the Company is available on the Internet at www.ddr.com.