Cedar Shopping Centers Announces Purchase and Sale of JV Interests

Cedar Shopping Centers, Inc. CDR today announced that, pursuant to the exercise of certain "buy-sell" provisions in joint venture agreements with Homburg Invest Inc., Cedar has elected to purchase HII's 80% interest in one of the nine properties owned by the existing Cedar/Homburg joint ventures (Cedar 20%; Homburg 80%), while electing to sell its 20% interests in the remaining eight of the nine properties presently owned by the Cedar/Homburg joint ventures. The properties have been valued, in the aggregate, pursuant to the "buy-sell" arrangements, at approximately $55 million over existing property-specific financing of approximately $102.42 million. Cedar's Property Management Agreements for the eight properties being sold will terminate at the closing of the sale to HII of its interest in the eight respective properties. Cedar is purchasing HII's 80% interest in Meadows Marketplace in Hershey, Pennsylvania for approximately $5.3 million. After closing, the property will then be wholly-owned by Cedar.