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Alexander Otto, CEO of German inner-city shopping centre developer ECE, has expanded his activities in the US by taking a major stake in American group Developers Diversified Realty (DDR).

In a statement on Tuesday, ECE said Otto will increase his investment in the New York-listed real estate investment trust (REIT) to more than 20%.

DDR is to sell up to 30 million new common shares at a total price of $112.5 mln (EUR 88 mln) to Otto in April, provided that the company obtains shareholder approval. Otto had already purchased around six million common shares in the group. DDR develops and manages retail operating properties in 45 states of the US, Puerto Rico, Brazil and Canada. The 710 properties comprise a total of 14.6 million m².

Otto received a BA and MBA from Harvard University, worked in New York City and has been responsible for the North American real estate business of his family for many years. This includes the Paramount Group with high-rise buildings in New York City and Washington DC, as well as the Sagitta Group with apartment buildings and industrial parks in Greater Toronto.

Otto has been CEO of ECE since 2000. ECE is currently active in 15 Central and Eastern European countries and manages a project volume of EUR 17 bn.