Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CLEVELAND-In another cancellation of a large deal, locally-based Developers Diversified Realty has said a promise to sell 13 assets to a joint venture with an unnamed investor for $890 million has been called off. The move comes as firms not only cut back on future plans, but also have started backtracking and shutting down large deals that were currently in the works.

Officials with DDR did not offer any reasons why the deal is dead. Company officials said in a statement that they continue “to engage in active discussions with the institutional investor concerning assets which might be included in a potential transaction in 2009.” A company spokesman did not return a call for comment.

The sale was supposed to include almost six million square feet of properties, with DDR ending up owning 20% and the partner owning 80%, and was supposed to decrease leverage and fund other possible capital expenditures with better upsides. David Oakes, EVP of finance and CIO with DDR, said in the statement that the company is disappointed. “We continue to access many sources of capital in order to meet our goals of improving our liquidity and lowering our leverage.”

The trust has made other cost-saving moves, such as forgoing its fourth-quarter dividend to save $80 million. Financing is also another DDR initiative, as it has received $34.5 million for an undisclosed asset, and $47.4 million for 12 years for its development in Manus, Brazil. The company as also halted development plans in Russia.

The REIT’s stock was down 89 cents to $4.80 cents per share at noon today. The trust owns and manages about 720 retail properties in 45 states, Puerto Rico and Brazil.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.