share cafe logo  
 
WELCOME TO SHARE CAFE | NEW? CLICK HERE TO JOIN +
 REGISTERED USERS LOGIN  
SHARE CAFE DAILY

Property: Westfield Sells More Malls
BY AIR DAILY - 19/04/2012

Get More Commentary, Dicussion & Market Information On -

WFD - WESTFIELD CORPORATION


Westfield Group has announced its second big disposal of US shopping centres in two months.

The company revealed yesterday that it will sell eight US shopping centres for $US1.15 ($A1.11) billion so it can pay down debt and invest in developments like the new World Trade Centre.

The shopping centre giant said Starwood Capital Group would own the majority interest in seven of the centres while the eighth, Eastland in California, is being sold in a separate transaction.

Back in February, the company revealed that it was selling a stake in 12 US malls to a Canadian pension fund for about $A1.85 billion.

Westfield said it was forming a $A4.8 billion joint venture with Canada Pension Plan Investment Board (CPPIB).

Westfield also said it had sold its interest in three shopping centres in the UK for $A240 million.

The funds raised in February would be used to fund a buyback of 10% of its stock.

That sent the securities up more than 6% to a seven-month high of $A8.92.

Yesterday's news saw the securities rise 3.3% or 30c to $9.17.

In other words the securities had fallen from that seven month peak reached in February until yesterday's announcement.

Westfield Co-CEO Peter Lowy said in yesterday's statement that the sales represented another step in the company's strategic plan to increase return on equity and long-term earnings growth.

"The proceeds from the transactions will initially pay down corporate debt and then be redeployed in higher-return redevelopment opportunities in the US, including the World Trade Centre," Mr Lowy said in a statement.

"We have previously flagged the potential divestment of non-core assets in the US and this transaction is an important step in the repositioning of our portfolio to major retail assets with strong franchise characteristics."

Westfield said the transaction values were approximately equal with the current book value of the assets.

The sales are expected to have an annualised dilutionary impact to the group's funds from operations of about 2c per security, prior to the redeployment of capital and the impact of any buy-back of Westfield Group securities.

The group's forecast distribution for the 2012 year of 49.5c per security remains unchanged.

Starwood would manage and control the platform with Westfield retaining a 10% interest, Westfield said.

The Starwood transaction is expected to close in the second quarter of 2012.

Westfield agreed to sell Eastland, a power centre in West Covina, California for $US147 million ($A142.42 million).




+ Return To Top Of Page


Share Cafe has made every effort to ensure the reliability of information contained on this website including the content on this page. However Share Cafe does not provide investment advice. Share Cafe is a media website reporting about financial markets and investment products in the widest sense possible. Potential investors should be fully aware that the purpose of Share Cafe and all of its contents are for general information only. Share Cafe recommends that investors contact a qualified financial services professional before making any investment decision.re making any investment decision.stment decision.

 

GET THE SHARECAFE BREAKFAST BRIEFING


Delivered free to your inbox before the market opens each trading day. Sign up below +

LATEST SHARE CAFE VIDEO


More Video   

RECENTLY ADDED TO SHARE CAFE


 › Friday Closing Bell
 › Friday's Gainers & Losers
 › Friday At The Close Video
 › The Fed, US Rates & What It Means For Investors
 › Telstra Buyback Glitch
 › Bassanese: $A Relief
 › Observations: Potential Returns & Risks
 › Fed Keeps Markets Happy, But At What Cost?
 › Australia's Demographics: A Sea Change
 › Bubble Watch #13 - Get Ready
More ShareCafe   



Money saving deals powered by Mozo

Share Cafe Is A Digifi Group Idea. Copyright © 2014. All Rights Reserved.