Westfield Group has announced their plans to sell 90% of their interest in eight commercial property centers in five states. The deal is reported to be worth $1.15 billion. Peter Lowry, CEO of Westfield Group said in a statement that the deal "represents a further step in our strategic plan to increase return on equity and long term earnings growth.” He also noted that the money from the transactions "will initially pay down corporate debt and then be redeployed in higher return development opportunities in the U.S., including the World Trade Center.”
While the 844,297-square-foot Easland power complex in West Covina, California was sold to an undisclosed buyer for $144 million, the other seven were sold to Starwood Capital, with a total of 6,607 square feet of class A space. The deal includes The Louis Joliet and Chicago Ridge in
Chicago, The Gateway complex in
Lincoln, Nebraska, The Westland in
Miami, the newly redeveloped Metreon in
San Francisco, The Southpark in
Cleveland, Ohio, and The Solano in
Fairfield, California.
Starwood Capital is an international group with investment holdings in the United States,
Brazil,
Australia and
New Zealand. Westwood Group will retain a 10% interest in all properties involved.
