Westfield Sells U.S. Mall Stakes for $700 Million to O’Connor
Westfield agreed to sell a 49.9 percent interest in the malls at book value, valuing the joint venture with the New York based real estate investment and development company at about $1.3 billion, the Sydney-based company said in a statement to the Australian stock exchange. Westfield will continue to manage, develop and lease the properties, it said.
“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,” Westfield co-Chief Executive Officer Peter Lowy, said in the statement.
The transaction will dilute Westfield’s 2013 funds from operations by about 1 cent per security, it said. The dilution will be offset when the company reinvests the capital raised, it said.
The sale is expected to be completed by the end of the second quarter, it said.
Westfield shares have climbed 1.9 percent this year, compared with a 6.9 percent gain in the benchmark S&P/ASX 200 index.
To contact the reporter on this story: Nichola Saminather in Sydney at email@example.com
To contact the editor responsible for this story: Andreea Papuc at firstname.lastname@example.org