Under the purchase agreement with Burnham, the properties will be acquired for $65.4 million. Of this amount, $15.1 million will be paid in cash. At DDR's option, any or all of the remaining balance may be paid in cash or by the issuance of DDR common shares to Burnham. The transaction is expected to close in late February and the assets will be wholly owned by DDR.

DDR has agreed to purchase the retail component of 1000 Van Ness, which is a mixed-use property in downtown San Francisco. The 123,000 square foot building has been designated as a National Historic Landmark and is leased to AMC Theatres, Crunch Fitness and several restaurants. The property also includes a parking garage and residential units, which are separately owned.

DDR has also agreed to purchase Hilltop Plaza Shopping Center, a 245,000 square foot open-air community shopping center, located along Interstate 80 in Richmond, California. This center, constructed in 1996 and renovated in 2000, is anchored by Barnes & Noble, Circuit City, Ross Dress, Petsmart and a recently constructed Century Theater.

DDR currently manages both properties under its Liquidation Services Agreement with Burnham. Under this two-year agreement, which went in effect in December 2000, DDR and its affiliate, Coventry Real Estate Partners, earn fees for the management, leasing, and construction management of Burnham.

DDR previously purchased 10 west coast assets from Burnham through its Retail Value Investment Program, a joint venture among DDR, Coventry Real Estate Partners and Prudential Real Estate Investors. These acquisitions, which totaled 2.16 million square feet, were made between December 2000 and August 2001.

Instant Insights /

DDR May Sell 2.8 Mil Shares to Fund Major Purchase

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