Coventry Real Estate Advisors Files $500 Million Lawsuit Against Developers Diversified Realty (DDR); Coventry Asking for Compensatory, Consequential and Punitive Damages

Coventry Accuses DDR of Fraud, Mismanagement and Violation of Fiduciary
Obligations

Coventry Dismisses DDR as Leasing and Managing Agent Across Portfolio of Assets
NEW YORK--(Business Wire)--
Coventry Real Estate Advisors (Coventry) today filed a $500 million lawsuit in
the Supreme Court of the State of New York against publicly-traded Developers
Diversified Realty (NYSE: DDR) for fraud, malfeasance, mismanagement, violation
of fiduciary and contractual obligations and self-dealing in 12 retail real
estate projects across the country where DDR provided management, leasing and
development services and was a co-investor with Coventry. Coventry is also
asking the Court for consequential and punitive damages.

Coventry said that as a result of DDR`s breaches of contract and fiduciary
duties owed to Coventry, it has terminated DDR as the leasing and management
agent across the portfolio of assets.

"After attempting for years to compel DDR to live up to its obligations, it is
with great reluctance that we take this step. We have, however, a fiduciary
obligation to protect the significant investment of hundreds of millions of
dollars made by many institutional investors, including pension and retirement
funds on behalf of their investors," said Peter Henkel, Coventry`s President and
Chief Executive Officer.

According to the complaint, as an equity owner and partner in Coventry Real
Estate Fund II, DDR agreed to manage, develop and lease the properties that the
fund acquired between 2003 and 2006. DDR elected not to fulfill its fiduciary
duties, and instead, undermined Coventry and pursued business practices that
generated significant fee income for DDR at the expense of the investors in the
fund.

Coventry alleges that it negotiated for `first class` management, leasing and
development services; timely, complete and competent professional reports; good
faith and professional recommendations for acquisitions; and a professional
fiduciary relationship. Instead, DDR failed to commit adequate and professional
resources; left Coventry uninformed on material aspects of the status of the
properties; misrepresented opportunities on assets it sold to Coventry; and
purposely inflated fees and escalated costs to give credence to even greater
fees. The effect of DDR`s purposeful actions have made many of the properties
commercially untenable.

Coventry stated that as a result of DDR`s breaches of its contractual, fiduciary
and common law duties, DDR significantly impaired the values of Coventry`s
investments, while enhancing the value of DDR`s stock price, placing itself in a
position to acquire at distressed prices some of the same properties DDR
recommended that Coventry acquire and which it promised to manage, lease and
develop for Coventry. As a result, Coventry is terminating DDR as manager for
all of the properties and is bringing this action to vindicate its rights and
the rights of its limited partners.

About Coventry Real Estate Advisors

Coventry Real Estate Advisors, founded in 1998, is a leading real estate
investment manager offering a broad array of services to institutional investors
seeking superior risk-adjusted returns in the value-added retail/mixed-use
property sector. Coventry has developed a successful track record of identifying
and capitalizing on unique opportunities in the retail/mixed use sector. The
firm has invested over $2.5 billion in transactions since inception through
Funds I, II and III.

Sloane & Company
Elliot Sloane, 212-446-1860
esloane@sloanepr.com

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