BEACHWOOD, Ohio, April 1, 2014 /PRNewswire/ -- DDR Corp. (DDR) announced that it sold 14 non-prime assets in the first quarter for gross proceeds of $198 million, of which the Company's share was $142 million. In addition, the Company has 14 non-prime operating assets totaling $97 million, and $36 million of non-income producing assets currently under contract which represents $103 million of proceeds at DDR's share. Of the operating assets sold or under contract, 22 are small format neighborhood centers or single tenant assets under 135,000 square feet, further reinforcing DDR's investment thesis to own large format prime power centers in top MSA's. The non-prime operating assets sold and under contract have average base rents per square foot of less than $9.50, approximately 35% below the Prime average, and feature trade area household incomes of less than $70,000, compared to the Prime average of $81,000.
Consistent with its aggressive capital recycling plan, the Company has reached an agreement to acquire three prime power centers located in downtown Chicago, Northern California, and Colorado for an aggregate price of approximately $235 million. The three centers feature strong demographic profiles across each trade area and average 585,000 people with household incomes of $88,000. These acquisitions are projected to close in the second or third quarter subject to certain closing terms and conditions and will be funded with proceeds from domestic dispositions and the previously announced sale of DDR's investment in Brazil.
"We are pleased to report the continued execution of our previously stated plan to increase disposition activity in 2014 as a result of a favorable pricing environment for asset sales. Our unwavering commitment to upgrading the quality of the portfolio through prudent capital allocation and active portfolio management is evidenced by more than 300 non-prime asset sales over the past five years. We remain focused on redeploying the proceeds from dispositions into high-quality prime power centers in major MSA's, and expect to acquire several assets that meet that criteria in the remainder of 2014," said David J. Oakes, president and chief financial officer of DDR.
About DDR Corp.
DDR is an owner and manager of 406 value-oriented shopping centers representing 113 million square feet in 39 states, Puerto Rico and Brazil. The Company's assets are concentrated in high barrier-to-entry markets with stable populations and high growth potential and its portfolio is actively managed to create long-term shareholder value. DDR is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol DDR. Additional information about the company is available at www.ddr.com, as well as on Twitter, LinkedIn and Facebook.
DDR considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company's expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, our ability to successfully complete the previously announced proposed sale of our 50% ownership interest in Sonae Sierra Brazil BV Sarl to Mr. Alexander Otto and certain of his affiliates, including entering into a binding purchase agreement and the satisfaction of the closing conditions thereof; local conditions such as supply of space or a reduction in demand for real estate in the area; competition from other available space; our ability to enter into definitive agreements and satisfy the closing conditions for property acquisitions; dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant; constructing properties or expansions that produce a desired yield on investment; our ability to buy or sell assets on commercially reasonable terms; our ability to complete acquisitions or dispositions of assets under contract; our ability to secure equity or debt financing on commercially acceptable terms or at all; our ability to enter into definitive agreements with regard to our financing and joint venture arrangements or our failure to satisfy conditions to the completion of these arrangements; and the success of our capital recycling strategy. For additional factors that could cause the results of the Company to differ materially from those indicated in the forward-looking statements, please refer to the Company's Form 10-K for the year ended December 31, 2013, as amended. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
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