Developers Diversified Realty Announces Property Sales
CLEVELAND, Jun 24, 2002 /PRNewswire-FirstCall via COMTEX/ -- Developers Diversified Realty (NYSE: DDR) today announced the sale of a Hagerstown, MD shopping center. The Centre at Hagerstown was previously held in a joint venture under the Company's Retail Value Investment Program, a joint venture among Developers Diversified, Coventry Real Estate Partners (the Company's majority-owned affiliate), and Prudential Real Estate Investors. The property sold for $41.7 million, of which 25.5% represents Developers Diversified's aggregate ownership interest. Developers Diversified also expects to report a gain of approximately $1.7 million on the Hagerstown, MD asset sale as part of the Company's merchant building development program. Approximately $1.1 million of the gain reflects Coventry's promoted interest in the asset.
Developers Diversified developed the Hagerstown, MD shopping center under its Retail Value Investment Program. The 286,000 square foot property is anchored by Borders, Marshalls, A.C. Moore, OfficeMax, Bed Bath & Beyond, Circuit City, Petsmart, Dick's Sporting Goods, Home Depot (owned by tenant), and Wal*Mart (owned by tenant).
Developers Diversified also announced the sale of an Eatontown, NJ retail property in a separate transaction. The Eatontown property was previously held in a joint venture among Developers Diversified, Coventry Real Estate Partners, and Hendon Properties. The property sold for $14.0 million, of which 79.4% represents Developers Diversified's aggregate ownership interest. Developers Diversified expects to report a gain of approximately $1.8 million on the Eatontown, NJ asset sale as part of the Company's merchant building development program. Approximately $700,000 of the gain reflects Coventry's promoted interest in the asset.
Developers Diversified and its joint venture partners redeveloped the 68,200 square foot Eatontown, NJ property, which was a former Best Products site, and retenanted the property with Bed Bath & Beyond and Circuit City.
Prudential Real Estate Investors ("PREI") provides global real estate and investment management services to institutional clients in the U.S., Europe, Asia and Latin America. PREI managed $11.7 billion of assets on behalf of 357 institutional clients as of March 31, 2002. PREI is the real estate investment and advisory business of Prudential Financial, Inc. (NYSE: PRU).
Developers Diversified currently owns and manages approximately 220 shopping centers in 41 states totaling 56 million square feet of retail real estate. Developers Diversified is a self-administered and managed real estate investment trust (REIT) operating as a fully integrated real estate company which acquires, develops and manages shopping centers. Additional information about Developers Diversified is available on the Internet at 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 21 E 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. For more details on the risk factors, please refer to the Company's Form 10-K as of December 31, 2001.
SOURCE Developers Diversified Realty Corporation 6/24/2002