Westfield Group Near Deal With Starwood

Westfield Group, the world’s second-largest shopping mall owner, is close to selling seven malls in the United States to Starwood Capital Group for about $1 billion, Reuters wrote, citing the Wall Street Journal. The seven malls were not identified, but five of the seven are among the 17 U.S. malls that Sydney-based Westfield put on the market early last year, the paper said. Starwood would buy a majority stake, it added.

(Reuters) – Westfield Group, the world’s second-largest shopping mall owner, is close to selling seven malls in the United States to Starwood Capital Group for about $1 billion, the Wall Street Journal said, citing two people familiar with the matter.

 

The seven malls were not identified, but five of the seven are among the 17 U.S. malls that Sydney-based Westfield put on the market early last year, the paper said. St arwood would buy a majority stake, it added.

 

Westfield’s spokeswoman in Australia could not be reached for comment immediately by Reuters.

 

Westfield, which owns 118 malls globally, has said it will sell some mid-scale malls to raise capital for several billion dollars of redevelopment work at its more lucrative properties.

 

In February, Westfield said it was selling a stake in a portfolio of 12 U.S. malls to Canada Pension Plan Investment Board for about $1.85 billion, freeing up cash to fund a share buyback and to expand its global reach.

 

The deals are the latest moves by Westfield to reinvent itself after spinning off stakes in its Australian malls in 2010 to free up capital and earn greater returns from property management and higher-yielding mall development.

 

Westfield has also ventured into new markets in Brazil and Italy in a bid to find growth outside of Australia and the United States.