PREI is footing most of the bill, providing 80% of the money toclose the deal. The investment is being made on behalf of PRISA II,a $1.5 billion open-end commingled equity fund it manages forinstitutional investors.
DDR, which has a 79% stake in Coventry, is providing theremaining 20%. DDR is also buying a 15th retail property fromBurnham in a separate deal. The latter's board of directors hasokayed the deal, but shareholders still have to approve it.
Under the terms of the deal, DDR will collect management feesfor operating and leasing the properties, which are mostly in theSan Francisco and Los Angeles areas, as well as Washington andOregon. DDR will also receive a promoted interest above 10%threshold returns to limited partners.
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