Macquarie DDR Announces Strategic Review
The Manager also announced changes to MDT’s distribution for December 2008.
The joint owners of the Manager, Macquarie Group and Developers Diversified Realty, believe that, as a result of the current global economic downturn and the continued deterioration in US markets, the market has not recognised MDT’s underlying asset value and this has resulted in Macquarie DDR trading at a substantial discount to its net asset value. The strategic review will explore all options seeking to maximise the value of unitholders’ investments in MDT, including the merit of asset sales as well as entity-level sales and to potentially solicit proposals to acquire 100% of MDT’s units.
There will be no disruption to the business or operations of Macquarie DDR during the strategic review process and management will continue to focus on strengthening the balance sheet, including asset sales.
In order to preserve operating capital while the strategic review is undertaken, the Manager considers it appropriate not to announce a December 2008 distribution and has determined that the next distribution period will end on 30 June 2009. The strategic review will take into consideration Macquarie DDR’s ongoing distribution policy.
In making this announcement, management notes that there is no assurance that the strategic review will result in any specific transaction.
