Cleveland-based Developers Diversified Realty on Monday provided updates on first quarter sales activity. During the quarter, the company closed the sale of five former Mervyns locations to Kohl's. The net sales proceeds were used to repay debt.
The company also closed on the sale of Ormond Towne Square in Ormond Beach, Fla., in mid-January, generating $22 million of net proceeds before closing costs. Furthermore, the company says it has more than $100 million of assets under contract or subject to letter of intent for sale.
Lastly, Developers Diversified repaid in full the outstanding balance of its senior unsecured notes which matured on January 30, 2009. The Company's next senior unsecured debt maturity does not occur until May of 2010.
"We are pleased by the progress on our initiatives to generate liquidity and reduce leverage ahead of the pace that we budgeted for 2009,” said David Oakes, Developers Diversified senior executive vice president of finance and chief investment officer.
Other Notable Deals
Cohen Commercial Properties, LLC, purchased the 83,167-square-foot Regency Village shopping center in Orlando, Fla., from Regency Centers Corp. Cohen hired Bridgette Johnson of Jones Lang LaSalle to handle leasing of the center and American Commercial Realty to manage the property. … WP Realty sold the 264,199-square-foot San Souci Plaza in California, Md., to Cedar Shopping Centers, Inc. for $31.8 million. The property is currently 96 percent occupied. Cedar acquired the property—along with New London Shopping Center in New London, Conn.—through a joint venture with Prime Commercial Properties PLC, a London-based real estate/development company. The joint venture is a 60/40 partnership with Prime controlling the majority stake. Cedar will be entitled to a "promote" fee structure, pursuant to which its profits participation would be increased to 45 percent if the venture reaches certain income targets. … Stirling Properties has been appointed to manage and lease the 22,411-square-foot Crossroads South Shopping Center in Lafayette, La.