DDR To Spin Off Assets, Create New REIT Valued At $3B

Shopping center REIT DDR Corp. will spin off a portfolio of 50 assets with a gross book value of approximately $3B.

The assets, which include 38 properties in the continental U.S., as well as 12 in Puerto Rico, will fall under a new publicly traded REIT called Retail Value Trust.

The spinoff will help DDR simplify operations, maintain the strength of its balance sheet and improve focus on its strategy moving forward.

“This transaction represents a final, decisive step in our transformation process, resulting in top-tier demographics and much greater exposure to long-term redevelopment opportunities,” DDR President and CEO David Lukes said in a statement.

RVT will be externally managed by DDR and will be capitalized through a $1.35B committed mortgage finance in early 2018.

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