DDR enters into agreements to acquire 5 shopping center properties.CLEVELAND--(BUSINESS WIRE)--March 28, 1995--Developers Diversified Realty Corporation (NYSE NYSE See: New York Stock Exchange :DDR (Double Data Rate) Refers to an SDRAM memory chip that increases performance by doubling the effective data rate of the frontside bus. For more details, see SDRAM. DDR - Double Data Rate Random Access Memory ) has entered into agreements to acquire the non-anchor retail shops at 5 new Wal-Mart anchored shopping centers shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into . The five shopping centers contain an aggregate of approximately 1.1 million total square feet of which approximately 145,950 square feet will be purchased by the Company. Each shopping center will be acquired upon completion of construction. The aggregate purchase price is expected to approximate $8.9 million which will represent an 11.25% capitalization rate Capitalization Rate According to the Appraisal Institute, it is a method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, by dividing the income estimate by an appropriate rate. to the seller on the centers' aggregate net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. . After adjusting for vacancy factors and management fees, the first year rate of return to the Company on these investments will be approximately 12.36% per annum Per annum Yearly. . The Company has completed the purchase of the retail shops and some additional land at two of these shopping centers at an aggregate purchase price of $3.1 million. A summary of the five properties is as follows: -0-
Total Company
Shopping Centers Square Owned Percent Anchor
Acquired Feet GLA Occupied Tenant
________________ _________ _________ ________ ___________________
Anderson, SC 275,399 14,250 100.00% Wal-Mart (not owned)
Orangeberg, SC 149,189 22,700 100.00% Wal-Mart (not owned)
_______ ______ _______
424,588 36,950 100.00%
_______ ______ _______
Under Contract ________________
Martinsville, VA 232,644 34,500 (a) Wal-Mart (not owned)
Columbia, SC 245,826 46,800 (a) Wal-Mart (not owned)
Georgetown, SC 220,694 27,700 (a) Wal-Mart (not owned)
_________ _______
699,164 109,000
_________ _______
1,123,752 145,950
_________ _______
_________ _______
(a) Expected to be 100% occupied at the date of acquisition. Since its initial public offering in February 1993, DDR has now completed the acquisition of 34 shopping center properties aggregating 6.1 million square feet of Company owned GLA for total consideration of approximately $348 million at a blended capitalization rate of approximately 10.3%. DDR now owns 87 shopping center properties in 23 states aggregating approximately 17.2 million square feet. Developers Diversified Realty Corporation Developers Diversified Realty Corporation is one of the largest owners and developers of retail shopping centers in the U.S. Based in Beachwood, Ohio, an eastern suburb of Greater Cleveland, DDRC, a publicly traded company on the NYSE, leads the real estate industry in power is a self-administered and self-managed Real Estate Investment Trust (``REIT'') operating as a fully-integrated real estate company which acquires, develops, owns, leases and manages shopping centers and business centers. Aggregate Company owned gross leasable area Gross leasable area (GLA) in the retail development industry is a term applied to shopping malls, lifestyle centers, outlet malls and other retail centers to indicate the amount of floor space available to be rented. currently approximates 14.0 million square feet and the overall occupancy rate Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) is approximately 97.2%. CONTACT: Developers Diversified Realty Corporation, Cleveland Scott A. Wolstein, 216/247-4700 |
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