TIAA-CREFF joint venture pays $3B for 67 retail centers.TIAA-CREF TIAA-CREF Teachers Insurance and Annuity Association - College Retirement Equities Fund and Developers Diversified announced a joint venture to purchase a portfolio of 67 community retail centers for approximately $3.0 billion of total asset value. "We believe that this joint venture shows that TIAA-CREF Global Real Estate can move nimbly nim·ble adj. nim·bler, nim·blest 1. Quick, light, or agile in movement or action; deft: nimble fingers. See Synonyms at dexterous. 2. on large and complex transactions and forge strong relationships with expert operators, such as Developers Diversified," said Tom Garbutt, managing director and head of TIAA-CREF's Global Real Estate unit. "As a long-term investor Long-term investor A person who makes investments for a period of at least five years in order to finance his or her long-term goals. , we believe the purchase of high quality properties such as the 67 community retail centers will be an attractive way to bring value to our clients." The properties that the joint venture intends to acquire represent a portion of the assets that will be acquired by Developers Diversified upon the consummation of its merger with Inland Retail Real Estate Trust, Inc. The execution of the merger agreement was announced on October 23, 2006 and the merger is expected to be completed in the first quarter of 2007. Scott Wolstein, Developers Diversified's chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , commented, "We're delighted to establish this strategic partnership with TIAA-CREF, which we consider to be a leader among institutional real estate investors A real estate investor is someone who actively or passively invests in real estate. An active investor may buy a property, make repairs and/or improvements to the property, and sell it later for a profit. . TIAA-CREF's early commitment to this portfolio acquisition underscores both their recognition of the quality of the real estate and our ability to create value through aggressive asset management." Garbutt stated, "We believe that the attractive pricing and terms of this venture are a direct result of TIAA-CREF Global Real Estate's early participation in this transaction. "We have been looking to strategically increase our retail exposure and we believe this purchase represents a unique opportunity to do so while focusing on opportunities for attractive rates of return for our investors." Given Developers Diversified's size and experience, TIAA-CREF expects to receive added value Added value in financial analysis of shares is to be distinguished from value added. Used as a measure of shareholder value, calculated using the formula:
An affiliate of TIAA TIAA Teachers Insurance and Annuity Association TIAA Travel Industry Association of America TIAA This Is An Acronym TIAA Texas Insurance Advisory Association (statistical reporting agency in Texas) TIAA Total Inactive Aircraft Authorization will contribute 85% of the equity in the joint venture, and an affiliate of Developers Diversified will contribute 15% of the equity in the joint venture. The properties in this portfolio are located predominately in Southeastern U.S. markets. |
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