Westfield Group creates Australia retail trust, to sell $3.5-B shares
The Westfield Group has announced that a retail trust would separately be created and listed to raise A$3.5 billion in capital.
The new Westfield Retail trust will be a joint venture partner in the company's 54 Australian and New Zealand shopping centers, and will have A$12.2 billion of assets, the company said in a statement to the Australian stock exchange.
"Rather than sell interests in our portfolio to outside parties, this proposal provides the opportunity for our securityholders to participate in our joint venture partner and benefit directly from the ownership of our portfolio in Australia and New Zealand," Westfield Chairman Mr. Frank Lowy said in the statement.
Reports said Westfield Group, which plans to separate its Australian and New Zealand centers, is also amidst a restructuring and capital raising.
Bloomberg news said quoting an emailed statement that "Westfield Group executives will meet with investors beginning at 10 a.m. in Sydney today."
The company yesterday sought a trading halt due to this endeavor.
The Sydney-based company, which has so far limited its business to Australia, New Zealand, the U.S. and the U.K., is
In May, Mr. Lowy said, they are looking for new opportunities and will consider expanding into other markets when conditions are on track.
Expansion Plans
The company last week opened its A$1.2 billion Westfield Sydney shopping mall with about 130 stores. Between now and mid-2011, additional 100 stores will be opened, company documents showed.
Westfield has about A$10 billion of future project opportunities across its markets, and plans to start as much as A$1 billion of development work each year after 2010, the company said at its half-year results presentation on Aug. 18.