CLEVELAND, July 8 /PRNewswire/ -- Developers Diversified Realty
Corporation (NYSE: DDR) today announced that it has entered the Salt Lake City, Utah market by completing the previously announced transaction to acquire the retail shopping center portfolio of Hermes Associates of Salt Lake
DDR acquires in this transaction nine existing community shopping centers:
* Family Center at Midvalley - Taylorsville, UT - 683,116 sq, ft, - 99.5% occupied
* Family Center at Fort Union - Midvale, UT - 647,835 sq. ft. - 100.0% occupied
* Family Center at Riverdale - Riverdale, UT - 596,168 sq. ft. - 91.3% occupied
* Family Center at Orem - Orem, UT - 128,278 sq. ft. - 100.0% occupied
* Family Center at Ogden - Ogden, UT - 165,784 sq. ft. - 90.9% occupied
* Family Center at 33rd. St. - Salt Lake City, UT - 39,090 sq. ft. - 100.0% occupied
* Family Center at Logan - Logan, UT - 19,200 sq. ft. - 100.0% occupied
* Family Center at Las Vegas - Las Vegas, NV - 61,615 sq. ft. - 100.0% occupied
* Family Center at Rapid City - Rapid City, SD - 35,544 sq. ft. - 84.7% occupied
* In addition, DDR also acquires the 53,749 sq, ft. Hermes Building in Salt Lake City, Utah.
Based on current leases and those contracted to begin prior to year end 1998, the acquired portfolio should produce a 9.4% first year return on investment for DDR. Expansions totaling 305,452 sq. ft. are currently underway or in final planning stages for the Midvalley (190,666 sq. ft.), 33rd Street (7,903 sq. ft.), Riverdale (82,324 sq. ft.), Ogden (7,903 sq. ft.) and Las Vegas (24,480 sq. ft.) centers. In addition, a new development project pipeline representing an anticipated 1.6 million sq. ft. of retail space was also acquired. These development projects, which are in various planning stages, are located in Weber, UT (728,111 sq. ft. - 2002 target opening), Meridian (Boise), ID (817,450 sq. ft. - 2002 target opening) and Ogden, UT (63,000 sq. ft. - 1999 target opening). DDR's aggregate consideration to Hermes Associates in this transaction totaled approximately $300 million comprised of:
* approximately 1.815 million DDR operating partnership units convertible on a one for one basis into DDR common stock and valued at approximately $73.0 million,
* $30.8 million in assumed mortgages with an aggregate interest rate of 7.98% and
* approximately $194.2 million in cash and assumed liabilities.
Developers Diversified Realty Corporation is a fully-integrated real estate company that acquires, develops, owns, leases and manages shopping centers and business centers operating as a self-administered and self-managed Real Estate Investment Trust ("REIT"). Additional information on DDR is available on our Internet web site: http://www.ddrc.com.
Developers Diversified Realty Corporation considers portions of this information to be forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company's expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward looking statements. There are a number of important factors that could cause the results of the Company to differ materially from those indicated by such forward-looking statements, including among other factors, local conditions such as oversupply of space or a reduction in demand for real estate in the area, competition from other available space, dependence on rental income from real property or the loss of a major tenant.
SOURCE Developers Diversified Realty Corporation