Developers Diversified and Coventry Real Estate Partners Announce Sale of California Shopping Center
CLEVELAND, OH, Apr 05, 2005 (MARKET WIRE via COMTEX) -- Developers Diversified Realty (NYSE: DDR) and Coventry Real Estate Partners ("Coventry") announced the sale of the Richmond City Center in Richmond, California, for approximately $13 million, which equates to a 7.5% cap rate. The sale of this asset generated a gain of approximately $2.2 million to the joint venture. Developers Diversified will exclude its portion of the gain from Funds From Operations ("FFO"). While the proceeds from this sale will not result in any additional promoted returns at this time, a significant amount of the proceeds $5.8 million will be applied as a return of equity capital. This equity return will result in a lower preferred return and therefore increase future promoted distributions to Coventry from operating cash flows.
Richmond City Center is a 77,000 square foot neighborhood grocery anchored center, which is part of a larger mixed-use redevelopment project in downtown Richmond. The center is anchored by Food 4 Less and Walgreens.
Developers Diversified owns or manages approximately 470 operating and development retail properties in 44 states, plus Puerto Rico, comprising approximately 108 million square feet. Developers Diversified is a self-administered and self-managed real estate investment trust (REIT) operating as a fully integrated real estate company which develops, leases and manages shopping centers. You can learn more about Developers Diversified on the Internet at www.ddr.com.
Coventry Real Estate Partners is an affiliate of Coventry Real Estate Advisors, an investment manager offering a broad array of services to institutional investors in the value-added retail property sector. Coventry acquires under-performing retail properties where identifiable opportunities exist to enhance free cash flow and create substantial value through leasing, redevelopment and intensive management. 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.
Prudential Real Estate Investors ("PREI") is the real estate investment management business of Prudential Financial. PREI is comprised of fund management centers in Parsippany, New Jersey; Atlanta, Georgia; Boston, Massachusetts; Munich, Germany; London, England; and Singapore; supported by a network of local offices throughout the world. PREI's specialized operating units offer a broad range of investment opportunities and investment management services in the United States, Europe, Asia, and Latin America. As of June 30, 2004, PREI managed $20.5 billion of gross assets ($14.2 billion net) on behalf of more than 300 clients and is ranked among the largest real estate investment managers.
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, 2004.