Developers Diversified and Coventry Real Estate Partners Announce Sale of Portion of City of Industry, California Shopping Center
CLEVELAND, Jan 21, 2004 /PRNewswire-FirstCall via COMTEX/ -- Developers Diversified Realty (NYSE: DDR) and Coventry Real Estate Partners ("Coventry") announced the sale of a portion of the Plaza at Puente Hills, located in City of Industry, California, to a private investor for approximately $33.0 million, of which $6.6 million represents Developers Diversified's proportionate share. The sale of the asset generated a gain of approximately $4.9 million to the joint venture. Developers Diversified will exclude its portion of the gain from Funds From Operations.
The portion of the Plaza at Puente Hills that was sold comprises approximately 300,000 square feet of retail space located at the eastern end of the property and includes space formerly occupied by IKEA, Circuit City and K&G Men's Center.
The Plaza at Puente Hills was acquired from Burnham Pacific Properties in 2001 and held in a joint venture under the Retail Value Investment Program ("RVIP"), a joint venture among Developers Diversified, Coventry and Prudential Real Estate Investors ("PREI"). RVIP owns the remaining 218,000 square feet of retail space that will continue to operate as the Plaza at Puente Hills. This remaining retail space is 100% leased and anchored by Sam's Club, Toys R' Us, Office Depot, and Home Depot.
Including the sale of the Plaza at Puente Hills, Developers Diversified has sold four assets from the former Burnham Pacific portfolio for aggregate sales proceeds of over $90 million, of which over $18 million represents Developers Diversified's proportionate share. In addition, Developers Diversified earns a promote on the sale of these joint venture assets.
Developers Diversified currently owns and manages approximately 360 operating and development retail properties in 44 states totaling over 82 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.ddr.com .
Coventry serves as the general partner of RVIP. On behalf of RVIP, Coventry has managed the investment of approximately $850 million in value- added retail real estate across the country since 1998.
PREI, comprised of fund management centers in Parsippany, NJ; Atlanta, GA; Boston, MA; Munich; London and Singapore, is supported by a network of local offices throughout the world. Its specialized operating units offer a broad range of investment opportunities and investment management services in the United States, Europe, Asia and Latin America. PREI managed $21.7 billion for more than 400 clients as of September 30, 2003; net assets under management (i.e. after deduction of associated debt and liabilities) were $15 billion.
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 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, 2002.
SOURCE Developers Diversified Realty Corporation