DDR buys shopping malls from Blackstone for $1.46B
DDR buying 30 shopping malls from JV with Blackstone for $1.46B; offering up to $250M in stock
BEACHWOOD, Ohio (AP) -- DDR Corp. is buying 30 of 44 U.S. shopping centers from a joint venture it has with private equity firm Blackstone Group LP in a deal worth $1.46 billion, saying it expects to make money by raising rents at the malls and redeveloping them.
They include centers in Boston, Chicago, Washington and Minneapolis among others.
DDR owns 445 shopping centers in the U.S. and Brazil. It will pay for the deal by assuming existing debt and by selling stock. It will hold a public offering for 32 million shares, selling up to $250 million worth of common stock to Blackstone. DDR expects the deal to close in the fourth quarter.
Blackstone and DDR bought the shopping centers in June 2012 for $1.4 billion, including nearly $1 billion in debt. Blackstone will keep its 95 percent stake in the remaining 14 properties in the joint venture.
DDR shares fell 46 cents, or 2.4 percent, to $18.95 in after-hours trading. The stock has gained 36 percent over the past 12 months.
