DDR Buys Shopping Malls From Blackstone For $1.46B

BEACHWOOD, Ohio (AP) – DDR Corp. is buying 30 of 44 U.S. shopping centers from a joint venture it has with private equity firm Blackstone Group LP for $1.46 billion, saying it expects to make money by raising rents at the malls and redeveloping them.

They include centers in Boston, Chicago, Washington and Minneapolis among others.

DDR owns 445 shopping centers in the U.S. and Brazil. It will pay for the deal by assuming existing debt and by selling stock. It will hold a public offering for 32 million shares, selling up to $250 million worth of common stock to Blackstone. DDR expects the deal to close in the fourth quarter.

DDR shares fell 51 cents, or 2.6 percent, to $18.90 in after-hours trading.