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Westfield offloads 8 US malls in $1.15bn deal Wednesday, 18th April 2012
Photo credit: My Retail Media
Westfield will sell eight US malls for USD 1.154 billion to Starwood Capital Group as it looks to raise funds to redevelop its remaining properties.
Reuters on Wednesday reported that Starwood Capital Group would take a majority interest in seven of the malls for USD 1 billion through a new retail platform, with Westfield retaining a 10 per cent stake. The eighth mall is being sold in a separate deal between the companies.
In an announcement to press, Westfield co-chief executive Peter Lowy said that the group is now planning to pay down debt and invest in redeveloping its US properties, such as its World Trade Centre property.
"Today's announcement represents a further step in our strategic plan to increase return on equity and long term earnings growth," Lowy said, as reported in Reuters.
The Starwood deal is set to close by the second quarter of 2012, with a standalone transaction scheduled to close in 45 days.