Ground broken for new Premium Outlets Montreal
Montreal — Simon Property Group, SmartCentres and Calloway REIT hosted a ground-breaking ceremony on Wednesday to begin the construction of Premium Outlets Montreal, the second Premium Outlet Center in Canada.
The first phase of Premium Outlets Montreal will open in the fall of 2014 and will feature more than 80 upscale stores within the planned 366,000 sq. ft. center.
Montreal follows the successful opening of Toronto Premium Outlets in August 2013, Simon and Calloway’s first outlet center in Canada.
The Montreal center will be located in Mirabel, Quebec. The single level, village-style development will have a contemporary, sophisticated design for an upscale shopping atmosphere.
DDR closes on $1.46 billion transaction with Blackstone
Beachwood, Ohio — DDR Corp. has closed a previously announced acquisition of a portfolio of 30 power centers from a joint venture with Blackstone Real Estate Partners VII L.P. and settled its forward equity sale. DDR acquired Blackstone’s 95% share.
The company funded the investment through a combination of proceeds from the issuance of new common equity and unsecured debt, preferred equity and mezzanine loan repayments and the assumption of existing mortgage debt.
DDR announces completion of third quarter transactions
Beachwood, Ohio — DDR Corp. has announced the closing of its previously announce acquisition activity totaling $591 million. The acquisitions include a portfolio of seven prime power centers in a newly-formed joint venture with an affiliate of Blackstone Real Estate Partners VII L.P. for $332 million in August and two market dominant regional power centers in Orlando, Fla. and Atlanta, Ga., for an aggregate $259 million in July.
The seven shopping centers acquired with Blackstone encompass 2.4 million sq. ft. of GLA. Blackstone owns 95% of the common equity in the joint venture, and DDR owns 5%. DDR provides leasing and management services. The assets are located in supply constrained metro areas including Los Angeles, San Diego, Washington, D.C., Portland and Cincinnati. All feature high-quality retailers such as Target, Wal-Mart, Ross Dress for Less, Dick’s Sporting Goods, Petco, Best Buy, Wegmans and The Fresh Market. The portfolio is 93% leased and presents redevelopment and leasing opportunities that should allow DDR’s operating platform to add additional value.
The power center acquisitions include Winter Garden Village in Orlando, a 1.1 million-sq.-ft. center with Target, Lowe’s, Marshalls/HomeGoods, Best Buy, Ross Dress For Less, Bed Bath & Beyond, Sports Authority, Staples, PetSmart, World Marketr, Old Navy and Ulta. Winter Garden will benefit from additional traffic in future years as a Florida hospital just broke ground on a medical campus adjacent to the shopping center.
Cumming Town Center is a 311,000-sq.-ft. regional power center in a northeastern suburb of Atlanta near DDR’s exiting Cumming Marketplace shopping center. It is 100% leased and is anchored by DICK’S Sporting Goods, T.J.Maxx/HomeGoods, Best Buy Staples, Old Navy and Petco.
Also during the third quarter, DDR disposed of $138 million of non-prime assets, of which $104 million was the company’s share.