DDR completes $4.3 billion of transactions in 2014
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For the full year 2014, the company closed $2.64 billion of acquisitions and $1.63 billion of dispositions at 100%.
A joint venture formed by DDR and an affiliate of Blackstone Real Estate Partners VII acquired 70 shopping centers formerly owned by American Realty Capital Properties for $376 million at the company's share in October 2014. DDR acquired one additional prime power center for $15 million at the company's 95% share in the fourth quarter.
During the fourth quarter, DDR disposed of 41 non-prime operating assets and seven land parcels, including the previously-announced 11-property portfolio formerly held in a joint venture with Kuwait Financial Centre, for a total of $258 million at DDR's share.
Also included in the total is the sale of an 11-property portfolio formerly held in a joint venture with Blackstone Real Estate Partners VII for $8.7 million at DDR's 5% share. The original investment in the Blackstone joint venture included $40 million of preferred equity with a fixed dividend rate of 10%, which was redeemed upon completion of the sale and dissolution of the joint venture in December 2014.
The company has six additional non-prime assets under contract for sale, representing total expected volume of $63 million at the company's share.
In 2014, DDR acquired 83 prime shopping centers for $1.06 billion.
For the full year 2014, DDR sold 82 non-prime operating assets and 16 land parcels for $1.21 billion at DDR's share, including its total investment in Brazil, the repayment of select preferred equity investments, and the sale of its interests in 47 joint venture assets. The operating assets sold had an average size of approximately 142,000 square feet, 42% below the company's prime portfolio average.
DDR also dissolved four joint ventures in 2014, BRE DDR Retail Holdings I, BRE DDR Retail Holdings II, Sonae Sierra Brazil BV Sarl and DDR Markaz II, and completed its exit of all markets outside of North America. Only 32 wholly-owned non-prime assets remain in the portfolio, representing approximately 2% of the company's gross asset value.
DDR is an owner and manager of 415 value-oriented shopping centers representing 118 million square feet in 41 states and Puerto Rico. ■