Australia-Based Mall Operator Strikes Second Huge Deal With Starwood In Less Than 18 Months
The Westfield Group, seeking to dispose of non-core assets to fund new development, has agreed to sell a majority interest in another seven U.S. shopping centers to an affiliate of Starwood Capital Group for$1.64 billion.
Sydney, Australia-based Westfield will retain a 10% stake in the malls in California, Ohio, Washington state and Indiana totaling more than 7.9 million leasable square feet. Westfield, the world's largest owner of shopping center assets, will still own and operate 40 centers in the U.S. when the transactions close as expected in the fourth quarter.
Last year in April, a new Starwood retail platform acquired a 90% stake in eight Westfield malls, including properties in the Chicago area, Nebraska, Northern California, Cleveland and Miami.
Since 2010, Westfield has been shedding non-core properties in order to focus on its best-forming malls, and on its $2.8 billion in current development, part of a $12 billion development pipeline.
Current projects include the retail development of the World Trade Center in New York and major expansions and redevelopments started in the first half in Sydney, Brisbane, Garden State Plaza in New Jersey, and Montgomery in Maryland.
"We are focused on redeploying our capital into superior retail destinations in major cities through divesting non-core assets and introducing joint venture partners into our high quality portfolio of assets," said Westfield Group Co-CEO Peter Lowy.
The assets include Belden Village Mall, Canton, OH, 826,140 square feet; Capital Mall, Olympia, WA, 779,268 square feet; Franklin Park Mall, Toledo, OH, 1.26 million square feet; Great Northern Mall, North Olmsted, OH, 1.18 million square feet; Parkway Plaza Mall, El Cajon, CA, 1.32 million square feet; Southlake Mall, Merrillville, IN, 1.36 million square feet; West Covina Mall, West Covina, CA, 1.18 million square feet.