Cleveland, OH; December 22, 2000 - - Developers Diversified Realty Corporation ("DDR") (NYSE: DDR) announced today it has been informed by representatives of the City of Long Beach, California that the City Council recently voted to issue a "notice to cure" to DDR regarding the Company's Queensway Bay development project.
DDR was prepared to break ground on the project, which was substantially pre-leased and fully financed, prior to the bankruptcy filings of two successive anchor theater tenants. Currently the Company has approximately $17.5 million invested in the project.
Eric Mallory, Senior Vice President of Development of DDR, commented, "We are extremely surprised and disappointed by the action taken by the Long Beach City Council regarding the Queensway Bay project. We will take all actions necessary to protect our investment in the project. The project remains viable and could be successfully completed with the City’s cooperation. DDR will review the agreements currently in place with the City and consider all of its options before responding to the City."
Developers Diversified Realty currently owns and manages over 200 shopping centers, totaling nearly 50 million square feet of real estate under management in 41 states. DDR is a self-administered and self-managed real estate investment trust (REIT) operating as a fully integrated real estate company which develops, leases and manages shopping centers. You can learn more about DDR on the internet at www.ddrc.com.
Developers Diversified Realty Corporation considers portions of this information to be forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the ecurities Exchange Act of 1934, both as amended, with respect to the Company’s expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause the results of the Company to differ materially from those indicated by such forward-looking statements, including among other factors, local conditions such as oversupply of space or a reduction in demand for real estate in the area, competition from other available space, dependence on rental income from real property or the loss of a major tenant and other matters described in the Management’s Discussion and Analysis section of the Company’s Form 10-Q for the quarter ended June 30, 2000.