Business Commercial Property

Tuesday 16 September 2014

76 shopping centres sold for $2bn

Neil Callanan and Brian Louis

Published 15/06/2014 | 02:30

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Blackstone has formed a joint venture with DDR to buy 76 shopping centres from American Realty Capital Properties for $2bn (€1.52bn) including assumed debt.

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The Blackstone Real Estate Partners VII fund will own 95pc of a venture formed to purchase the properties, with DDR owning the rest.

American Realty said last month it planned to sell the multitenant shopping centres to fund its purchase of Red Lobster's estate portfolio.

In January, Blackstone teamed up with DDR to buy 46 US shopping centres for $1.43bn. Retail landlords are benefiting from rising retail sales, which rose 0.3pc in May following a 0.5pc gain in April.

The transaction will "produce attractive risk- adjusted returns while securing access to acquisition opportunities," Daniel B Hurwitz, chief executive of DDR, said.

The venture plans to sell 29 of the properties, Joseph Tichar, DDR senior vice president of corporate operations said. "We are in the process of evaluating assets within the portfolio that do not meet the joint venture's investment thesis," he added.

The proposed deal includes debt of $461 million and about $800m of new financings, according to the statement.

The properties have combined space of 16.4 million sq. feet.

DDR has the right of first offer to buy 10 of the assets, according to the statement. The deal is expected to close in the third quarter.

(Bloomberg)

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