Mall operator DDR Corp. said all 12 of its Puerto Rico properties are now “clean and safe” and most anchor tenants are reopening as conditions allow.
Seven of eight Walmarts, all Home Depots (2), Sam’s Club (1), and Pueblo and Econo grocery stores (3) are back to business, DDR executives said.
A significant number of additional anchor openings are expected to take place in the coming days. Most of the company’s Puerto Rico outparcel tenants are also currently open and operating, DDR said in an update released Wednesday.
“Openings of small-shops at the company’s open-air assets will depend on restoration of utility power, the timing of which is currently uncertain. In addition, there are selective tenant spaces that have been rendered currently untenantable,” the mall operators said.
- Plaza del Sol, the company’s largest asset by net operating income in Puerto Rico, is now receiving power from both generator and utility sources, which is facilitating the reopening of small shops.
- Río Hondo, the company’s second largest asset in Puerto Rico, is expected to begin receiving utility power within the next week, enabling small shop openings.
- The company expects to have additional generators installed at Plaza del Norte, its third largest mall asset in the next several weeks.
- The company has completed cleanup work at Palma Real and continues to assess necessary repairs. A determination of expected tenant opening dates will be made as further analysis of the repair of this property is completed.
“We have now been in contact with all of our team members in Puerto Rico and remain focused on delivering aid to them,” commented David Lukes, president of DDR.
“All 12 of our properties are now in a clean and safe condition and we are in the process of making temporary repairs and helping tenants reopen wherever possible,” he said.
“I am incredibly proud of DDR’s Puerto Rico team, who have demonstrated courage and resilience in this challenging time, as well as the numerous employees throughout the firm who have worked with remarkable speed and resourcefulness,” he added.
DDR maintains insurance on its assets in Puerto Rico with policy limits of more than $350 million for property damage, along with coverage for business interruption. The company’s insurance policies remain subject to various terms and condition including a deductible of approximately $6 million, DDR said.