Aid from Abroad
Mar 1, 2009 12:00 PM
Developers Diversified Realty, which has been battling concerns about its debt load, received a cash infusion from abroad. In late February, German investor Alexander Otto purchased 30 million common shares and warrants entitling the Otto family to purchase an additional 10 million shares. When completed, the share purchase will increase the Otto family's ownership to an excess of 20 percent of the common shares outstanding, making the family the company's largest individual shareholder. An affiliate of the Otto family also has provided the company with a commitment to make a five-year, fixed-rate, secured mortgage loan to the company in the amount of $60 million. Otto and other members of his family are the owners of ECE Projektmanagement of Germany, one of Europe's leading firms in developing and managing inner-city shopping centers.
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