Excerpt from Wall Street Journal article:-Deferring $180...

Excerpt from Wall Street Journal article:-

Deferring $180 Million

DRA, which caters to pension funds, endowments and other institutional investors, has $10 billion in assets under management, having previously purchased 160 office and industrial buildings, 120 shopping centers, 400 apartment buildings and the real estate of 370 car dealerships.

To finalize terms of the deal in a letter of intent, Developers Diversified agreed to provide DRA with financing for roughly 20% of the deal, if such a loan is needed, effectively allowing DRA to pay for that portion later with interest.

Thus, Developers Diversified would allow DRA to defer payment of roughly $180 million of the deal's price. Developers Diversified aims to complete the deal by year's end. DRA executives didn't return phone messages seeking comment.

Developers Diversified has teamed up with DRA on various deals since 1995. In 1998, Developers Diversified sold a 50% stake in five shopping centers to DRA for $280 million.

DRA in September backed out of a deal to buy 29 U.S. shopping centers from debt-laden Centro Properties Group after Centro refused DRA's request to lower the $714 million price, according to people familiar with the deal. But analysts say DRA's familiarity with Developers Diversified bodes well for a completion of that deal.


Ends.

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