Second graph, second sentence of release dated March 11, 2013, should read: At the end of 2012, leased occupancy for the 2.2 million square foot portfolio was 93.0% and annualized base rent was $14.51 per square foot. (sted. At the end of 2012, leased occupancy for the 2.2 million square foot portfolio was 91.3% and annualized base rent was $14.07 per square foot.)
The corrected release reads:
RAMCO-GERSHENSON ANNOUNCES AGREEMENT TO ACQUIRE ITS PARTNER’S INTEREST IN 12 MARKET DOMINANT SHOPPING CENTERS
Ramco-Gershenson Properties Trust (NYSE:RPT) (the “Company”) today announced that it has entered into an agreement to acquire its partner’s 70% ownership interest in 12 of 15 shopping centers owned by Ramco/Lion Venture LP for approximately $151.9 million in cash and the assumption of its partner’s pro-rata share of debt of approximately $104.9 million. The Company currently owns a 30% interest in the properties.
The 12 shopping centers that the Company is acquiring are anchored by grocery and/or value-oriented retailers and are located in Florida and Michigan. At the end of 2012, leased occupancy for the 2.2 million square foot portfolio was 93.0% and annualized base rent was $14.51 per square foot. The shopping centers serve strong trade areas with an average 5-mile population of 153,000 and an average 5-mile household income of $81,000. The top three tenants, based on annualized base rents for the centers, are Bed, Bath & Beyond, TJX Companies, and LA Fitness. In 2012, the 12 shopping centers generated net operating income of approximately $27.0 million, which equates to a capitalization rate of 7.4% on the aggregate asset value of $366.8 million.
“The purchase of our partner’s interest in these 12 assets reflects the Company’s focus on growing its portfolio of large, market dominant shopping centers in strong metropolitan trade areas,” said Dennis Gershenson, President and Chief Executive Officer of Ramco-Gershenson Properties Trust. “The completion of this transaction will increase our assets by more than 25% while achieving an attractive risk-adjusted return. Our familiarity with the properties, the strength of their tenancies and demographic profiles, and the potential for future upside were all considerations in entering into this agreement.”