DDR Announces Closing Of Initial Blackstone Transaction For $1.46 Bln

(RTTNews) - DDR Corp. (DDR) announced the closing of its previously announced acquisition of a portfolio of 30 prime power centers from its existing joint venture with Blackstone Real Estate Partners VII L.P., as well as the settlement of its forward equity sale.

The company stated that the investment was funded through a combination of proceeds from the issuance of new common equity and unsecured debt, preferred equity and mezzanine loan repayments, and the assumption of existing mortgage debt.

DDR commented that it acquired Blackstone's 95% interest in 30 open-air, value oriented power centers previously held in joint venture. The 95% leased portfolio is comprised of 11.8 million square feet of GLA and features high credit quality tenants typically found in DDR's power centers such as Walmart, Target, T.J. Maxx, Kohl's, PetSmart, Bed Bath and Beyond, and Dick's Sporting Goods.

The acquisition further simplifies the company's structure by reducing joint venture assets by 20% and enhances EBITDA quality through the conversion of shorter-term fee and interest income into higher multiple, long-term property level cash flow with strong growth potential, DDR noted.