Cedar Shopping Centers Inc. today announced that it had closed on the contribution of nine supermarket-anchored shopping centers to joint venture entities owned 20 percent by Cedar and 80 percent by Homburg Invest Inc., an international real estate company listed on the Toronto and Euronext (Amsterdam) Stock Exchanges.
The nine properties were valued at $169.5 million.
The 80 percent interests were acquired for $53.2 million including closing costs and adjustments and paid to Cedar in cash.
Eight of the nine properties are located in Pennsylvania and one is in Massachusetts; all but two of the properties are anchored by Giant or Stop & Shop supermarkets, affiliates of the Ahold (Netherlands) group.
The properties are expected to be held by the joint venture for 5 to 7 years, but can be sold earlier pursuant to a “buy-sell” arrangement which may be triggered as early as 18 months after closing by either party. Cedar will also receive fees for ongoing property management, leasing, construction management, acquisition, disposition, financings and refinancings with respect to the properties.
Also today, Cedar announced that it had completed the previously announced purchase of Timpany Plaza in Gardner, Mass., and Carll’s Corner in Bridgeton, N.J. Timpany Plaza is a 184,000-square-foot center anchored by a 60,000-square-foot Stop & Shop supermarket. Carll’s Corner is a 130,000-square-foot center anchored by a 55,000-square-foot Acme supermarket.
The aggregate purchase price for the two properties, acquired from Paragon Realty Group LLC of Westport, Conn., is approximately $31.9 million, including closing costs.
Cedar Shopping Centers Inc. is a fully-integrated real estate investment trust.