Ramco-Gershenson Properties Trust Announces Agreement To Acquire Its Partner’s Interest In 12 Market Dominant Shopping Centers

Ramco-Gershenson Properties Trust 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 91.3% and annualized base rent was $14.07 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.