Southlake Among Westfield Malls In Sale
September 17,2013 — The Westfield Group says it has an agreements to sell seven “non-core shopping centers” in the United States to a Starwood Capital Group-controlled affiliate for $1.64-billion.
Westfield’s Southlake Mall in Hobart/Merrillville is the largest mall, with 1.36-million square feet, among the properties included in the planned transaction. Three others are in Ohio, two in California, and one in Washington state.
Yesterday’s announcement from Sydney, Australia involved Westfield Group Co-CEO Peter Lowy, who said, “(the) announcement continues the implementation of our strategic plan which positions WDC to generate greater shareholder value. 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.”
Westfield says Starwood will own and manage the majority interest in the centers with Westfield retaining a 10% common equity interest.
It says, “The transactions’ value of $1.64 billion is $120 million below the book value of the assets at 31 December 2012 and in line with the book values at 30 June 2013,” expected to close in the fourth quarter of 2013.In