Developers Diversified Realty Originates Mezzanine Financing on High Quality Shopping Center Assets

CLEVELAND, Sept. 20 /PRNewswire-FirstCall/ -- Developers Diversified Realty Corporation (NYSE: DDR) ("DDR") announced today that it has originated a $31.7 million mezzanine loan to a subsidiary of EDT Retail Trust (ASX: EDT) ("EDT") secured by equity interests in six prime shopping center assets owned by EDT and managed and leased by DDR. The mezzanine loan was funded in conjunction with the origination of a new $142.3 million senior loan secured by first mortgages on these EDT properties. DDR will continue to lease and manage the assets on behalf of EDT pursuant to the existing management and leasing agreement.

The seven-year mezzanine loan is co-terminus with the senior loan and has a fixed interest rate of 10%. The aggregate loan to value ratio for the senior and mezzanine loans is approximately 75%. DDR fully funded the mezzanine loan with the proceeds from the recent sale of approximately 2.8 million shares of DDR common stock.

David Oakes, Developers Diversified's Chief Financial Officer stated, "We are pleased to make this conservatively underwritten loan that we believe provides an attractive risk-adjusted return on prime assets that we have managed for years. Simultaneously funding this investment with new equity is consistent with our stated strategic goals and is beneficial to our covenants and funds from operations per share."

Developers Diversified owns and manages approximately 620 retail operating and development properties in 42 states, Brazil, Canada and Puerto Rico. Totaling more than 136 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 Company's website at www.ddr.com.

SOURCE Developers Diversified Realty Corporation

Copyright . 20 PR Newswire