EDT Retail Management Limited
The acquisition/disposition of EDT was a complex six-phase transaction which EPN was uniquely suited to execute. Within two years, EPN sourced, acquired, improved, and exited its holdings, generating outstanding returns for investors.
Through a US$116 million recapitalization investment, EPN Group acquired a 48% ownership interest in EDT Retail Trust (formerly known as Macquarie DDR Trust), and became the Trust’s largest unitholder. As part of the investment, EPN also acquired a 50% interest in Responsible Entity of the Trust. EPN owned the Responsible Entity in partnership with Developers Diversified Realty Corporation (DDR), who provides property management and leasing services for the Trust.
EPN’s investment was part of a larger recapitalization effort by MDT which raised approximately A$200 million. The proceeds of the MDT recapitalization were largely used for repayment of the amounts outstanding under the Trust's unsecured debt and derivative liabilities and other senior debt, and provided enhanced balance sheet stability to the Trust.
In March 2011, EPN engaged in an off-market takeover bid which led to the acquisition of 100% of the outstanding units of EDT Retail Trust.
In June 2012, EPN announced the sale of EDT Retail Trust for approximately $1.5B to a joint venture of Blackstone and DDR.
The Trust, which was publicly traded in Australia (ASX: EDT), owned 48 operating retail properties located in 20 states across the major regions of the U.S. The portfolio, which was mainly comprised of shopping centers and single-box retail assets include approximately 460 tenants and 11 million square feet (1 million square meters) of leasable area.