A joint venture between commercial real estate companies DDR and Blackstone was recently announced, with the two linking up for a purchase worth approximately $1.4 billion.
The purchase involves nearly 50 shopping centers that were previously owned by EPN Group, the report said. The transaction includes $640 million in debt and approximately $300 million in new financing. Blackstone will have its real estate fund, Blackstone Real Estate Partners VII own 95 percent of the purchased amount. DDR will have an affiliate own the remaining 5 percent.
DDR will also pour an additional $150 million in equity into the portfolio, and has first choice to purchase 10 of the assets in question, according to the report.
"We are very pleased to establish a partnership with Blackstone, one of the most successful and respected real estate investors in the world," said Daniel Hurwitz, president and chief executive officer of DDR. "Moreover, this transaction illustrates our access to off market opportunities while creative structuring enables risk mitigation and non-dilutive deleveraging."
DDR owns or manages more than 530 shopping centers that span more than 134 million square feet throughout the United States, Brazil and Puerto Rico.