Westfield Divests Stakes in Florida Centres for $700M, Shares Up
Westfield Group has divested half of its controlling shares in six malls in Florida, United States for US$700 million as part of its continuing strategy efforts to reallocate shopping center interests. The sell-off was made to U.S. real estate firm O'Connor Capital Partners.
Shares in Westfield jumped by 23 cents to $10.99, or 2.14 per cent, at 10.45am AEDT.
"This agreement carries on the group's strategy of introducing joint venture partners into our assets globally as well as disposing of non-core assets," Peter Lowy, Westfield co-chief executive officer, said in a statement to the Australian Stock Exchange.
O'Connor stands to gain a 49.9 per cent interest of the portfolio, which carries a gross value of US$1.28 billion.
The deal, expected to be finalised in the second quarter of 2013, according to Westfield, Australia's shopping centre giant as well as the world's biggest shopping centre operator by assets, was subject to financing.
Westfield, however, remains as property, leasing and development manager, in line with terms entered with previous joint venture deals by the group.
In July 2012, Westfield had said it will sell off assets, either in the UK or the U.S., or even Australia, to recycle capital which could be used for more ambitious and expansive projects, such as the fast-growing market of Brazil.
O'Connor Capital Partners is a private property investor, developer and manager. Founded in 1983, it has acquired or developed more than $US20 billion of real estate.