{"id":1004035680,"date":"2012-01-11T07:12:28","date_gmt":"2012-01-11T15:12:28","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004035680"},"modified":"2022-12-08T20:05:18","modified_gmt":"2022-12-09T04:05:18","slug":"blackstone-ddr-make-1-4b-retail-play","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/blackstone-ddr-make-1-4b-retail-play\/","title":{"rendered":"Blackstone, DDR Make $1.4B Retail Play"},"content":{"rendered":"

January 11, 2012<\/strong>
\nBy Nicholas Ziegler, News Editor<\/em><\/p>\n

While it\u2019s not quite hitting the level of last year\u2019s $9.4 billion purchase by The Blackstone Group for 588 retail properties owned by Centro Properties Group<\/a>,\u00a0 it\u2019s still the biggest news in retail for the nascent year.\u00a0 BRE DDR Retail Holdings L.L.C., a joint venture between Blackstone Real Estate Partners VII L.P. and DDR Corp., has just spent $1.4 billion on a 47-property retail portfolio formerly owned by EPN Group.<\/p>\n

The transaction, which is expected to close in June of this year, includes a $934 million assumption of debt. Blackstone will own 95 percent of the joint venture, and DDR will own 5 percent and invest $150 million in preferred stock with a fixed dividend rate of 10 percent. To finance its investment in the joint venture, Beachwood, Ohio-based DDR began a public offering of 15 million shares and expects to give underwriters an option to buy up to 2.25 million more shares.<\/p>\n

\u201cThis transaction enables the retention of significant fee income and enhances our current ownership and future access to prime assets,\u201d Daniel Hurwitz, DDR\u2019s president & CEO, said.<\/p>\n

The properties, totaling 10.6 million square feet and located across 20 states, are 90 percent leased. The largest tenants by base rent are TJ Maxx, Kohl\u2019s and PetSmart.<\/p>\n

Blackstone has been aggressively pursuing retail assets in the last few quarters, as evidenced by its $473 million purchase of 36 properties from Equity One Inc.<\/a> in December as well as the $9.4 billion Centro purchase.<\/p>\n

Israel-based Elbit Imaging Ltd., the affiliate company of EPN, saw its shares jump 19 percent on the news. According to Bloomberg, Plaza Centers N.V., the Elbit unit that owns the malls that are being sold in the U.S., climbed as much as 21 percent in London trading, the biggest gain in two years.<\/p>\n

Goldman, Sachs & Co.\u00a0advised DDR and\u00a0JP Morgan\u00a0advised EPN on the deal.\u00a0Citigroup Global Markets Inc.\u00a0and\u00a0Eastdil Secured advised Blackstone.<\/p>\n

A 2011 year-end report by services firm Jones Lang LaSalle noted that the retail sector \u201ccontinues to edge tentatively toward recovery,\u201d but will likely \u201cremain in a holding pattern for at least the next three quarters.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

BRE DDR Retail Holdings L.L.C., a joint venture between Blackstone Real Estate Partners VII L.P. and DDR Corp., has just spent $1.4 billion on a 47-property retail portfolio formerly owned by EPN Group.<\/p>\n","protected":false},"author":1201,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21825,21783,21742,21785,21749],"tags":[],"class_list":["post-1004035680","post","type-post","status-publish","format-standard","hentry","category-finance","category-investment","category-latest","category-property-management","category-retail"],"acf":[],"yoast_head":"\nBlackstone, DDR Make $1.4B Retail Play - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/blackstone-ddr-make-1-4b-retail-play\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Blackstone, DDR Make $1.4B Retail Play\" \/>\n<meta property=\"og:description\" content=\"BRE DDR Retail Holdings L.L.C., a joint venture between Blackstone Real Estate Partners VII L.P. and DDR Corp., has just spent $1.4 billion on a 47-property retail portfolio formerly owned by EPN Group.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/blackstone-ddr-make-1-4b-retail-play\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2012-01-11T15:12:28+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T04:05:18+00:00\" \/>\n<meta name=\"author\" content=\"Nicholas Ziegler\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/blackstone-ddr-make-1-4b-retail-play\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/blackstone-ddr-make-1-4b-retail-play\\\/\"},\"author\":{\"name\":\"Nicholas Ziegler\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/ff3a837f33daecfcf8978b405eaae20c\"},\"headline\":\"Blackstone, DDR Make $1.4B Retail Play\",\"datePublished\":\"2012-01-11T15:12:28+00:00\",\"dateModified\":\"2022-12-09T04:05:18+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/blackstone-ddr-make-1-4b-retail-play\\\/\"},\"wordCount\":359,\"commentCount\":0,\"articleSection\":[\"Finance\",\"Investment\",\"News\",\"Property Management\",\"Retail\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/blackstone-ddr-make-1-4b-retail-play\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/blackstone-ddr-make-1-4b-retail-play\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/blackstone-ddr-make-1-4b-retail-play\\\/\",\"name\":\"Blackstone, DDR Make $1.4B Retail Play - 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