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DDR merges with industrial REIT
Finishing a deal it started more than a year ago, Cleveland-based Developers Diversified Realty (DDR), best known for developing community shopping centers, has merged with Irving, Texas-based American Industrial Properties REIT (AIP). DDR already owned 46% of the firm following a deal completed in 1999. In a new arrangement, DDR paid $13.74 a share for the stake of the company it did not already own. To effect the transaction, AIP agreed to sell 31 properties to affiliates of Lend Lease Real Estate Investments for $292.5 million and agreed to sell an office building to an unnamed third party for $55 million. Those transactions will fund the DDR deal. Through its subsidiary, DDR will survive as AIP's sole shareholder, controlling its 39 remaining properties. The purchase price represents a premium of 9.9% over AIP's closing stock price of $12.50 just prior to the deal.

Winn-Dixie to purchase 106 Jitney-Jungle stores
Winn-Dixie Stores, Jacksonville, Fla., has agreed to purchase 72 grocery stores, 32 fuel centers and two liquor stores in Mississippi, Alabama, Louisiana and Florida from Jackson, Miss., Jitney-Jungle Stores of America for $85 million plus inventory.

LVMH purchases 51% of La Samaritaine
Louis Vuitton Möet Hennessy bought a 51% stake in Paris department store La Samaritaine for $190 million.

American Eagle Outfitters absorbs Dylex divisions
American Eagle Outfitters has agreed to buy the assets of Canadian retailer Dylex's Thriftys, Braemar and National Logistics Services divisions for C$110 million ($74 million) in cash, subject to final negotiation of a definitive purchase agreement. Thriftys is a 115-store specialty retailer of casual apparel carrying the Bluenotes label (similar to American Eagle). Braemar is a women's ready-to-wear clothier with 57 stores. National Logistics Services is a warehouse and distribution operation. Dylex will retain control of its BiWay, Fairweather and Labels chains.

Footstar to acquire JBI, Morse Footwear
Mahwah, N.J.-based Footstar Corp., which operates Footaction and Just for Feet, has entered into an agreement to buy J. Baker's JBI Footwear and Morse Shoe footwear operations in 1,318 discount, department and specialty stores. Canton, Mass.-based J. Baker, which operates 600 retail stores specializing in big and tall men's clothing, estimates the proceeds from the sale to be approximately $60 million.

DEAL OF THE MONTH
The auction of Grand Union's assets to C&S Wholesale Grocers through U.S. Bankruptcy Court in November has set up a scenario in which Dutch giant Royal Ahold could net 63 stores, giving it an expanded presence in the metropolitan New York area, which it has been trying to bolster since 1999. C&S, which was Wayne, N.J.-based Grand Union's supplier and one of its largest creditors, submitted a winning bid of $301.8 million for 185 of Grand Union's 197 stores in a bankruptcy auction in November. C&S, Brattleboro, Vt., made the buy with plans to sell 102 stores to other chains, including the 63 to Ahold. Ahold tried to expand in the same market in 1999 when it agreed to buy Carteret, N.J.-based Pathmark Stores. However, the Federal Trade Commission eventually blocked the transaction. Ahold plans to operate 45 of the stores in New Jersey, suburban New York and Connecticut under the Stop & Shop brand and 18 in upstate New York under the Tops brand.

Grapevine Mills gets $14.5M in financing
Grapevine Mills, a 1.4 million-square-foot retail entertainment complex in the Dallas/Fort Worth Metroplex, received $14.5 million in permanent financing from GMAC Commercial Mortgage Corp. The financing will fund a 308,407-square-foot retail space expansion, with new tenants including Bass Pro Outdoor World and Sun & Ski Sports, according to GMAC. The borrower, Grapevine Mills II LLC, received an eight-year fixed rate permanent loan at 8.39% with repayment based on a 30-year amortization. Financing was arrange by GMAC Commerical Mortgage's conduit unit.