Shopping centre operator Westfield Corporation has sold five of its US shopping malls totalling more than six million sqm for US$1.1 billion.
The proceeds from the sale will reduce gearing and help fund the group’s US$11.4 billion development program.
The move is line with the company’s recent strategy to focus on its flagship assets, which include the new World Trade Centre mall, due to open in spring 2016.
In November, Westfield sold Westfield Carlsbad mall, Carlsbad, California, to New York’s Rouse Properties for $170 million. Combined, Westfield will realise about $1 billion in net proceeds from the two transactions.
“Our strategic focus is to create and operate flagship assets in leading markets and divest non-core assets,” Westfield cochief CEO Peter Lowy said in the statement.
Westfield sold the properties to a newly formed joined venture, with Dallas-based Centennial Real Estate, Dallas as managing member, together with Montgomery Street Partners and USAA Real Estate. Westfield will retain a 20 per cent non-managing common equity interest.
The five malls in the transaction are Connecticut Post, Milford, Connecticut; Fox Valley, Aurora, Illinois; Hawthorn, Vernon Hills, Illinois; and MainPlace, Santa Ana, California; and Vancouver, Washington.
