A joint venture of Big Shopping Centers (2004) Ltd. (TASE:BIG) and US REIT, Developers Diversified Realty Corporation (NYSE: DDR), has bought the Marine Gateway commercial center in San Francisco for $36 million.
Big's US subsidiary will own 75% of the property and Developers Diversified will own 25% and manage it.
Big and DDR are conducting due diligence on the property. The Marine Gateway commercial center carries a $29 million loan, scheduled for repayment in March 2015. The loan will be deducted from the purchase price, resulting in a final price tag of $7 million, of which Big will pay $5.3 million.
The 16,880-square meter mall is leased to 18 tenants. The mall is anchored by Best Buy, Ross, Babies R Us, and CVS drug store.
This is the first acquisition by Big and DDR through their joint venture, which they set up earlier this year. Until now, Big's transactions in the US have been through its joint venture with Kimco Realty Corporation (NYSE: KIM). The two companies' joint properties portfolio is worth $518 million, at purchase value.
Big is controlled by chairman Yehuda Naftali and run by CEO Eitan Bar-Zeev. Big's share price rose 1.2% by early afternoon to NIS 90.20, giving a market cap of NIS 10.3 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on October 17, 2010
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