Changes to the Westfield America shopping centre portfolio

07 May 1999

Countries: United States

Westfield America Trust has announced two changes to the Westfield America, Inc. shopping centre portfolio in the US.

The Los Cerritos centre in Los Angeles, currently 100% owned by Westfield America, Inc. will be sold to The Macerich Company, a US real estate investment trust (REIT), for US$93 million in net proceeds after the assumption of debt. The sale is expected to close later this quarter.

Macerich also owns a competing centre, Lakewood Mall, which is of similar size to Los Cerritos (116,000 square metres) located six kilometres away. Lakewood is currently planning a major redevelopment which will substantially enlarge the centre.

Westfield America will also acquire the remaining 50% interest in Westfield Shoppingtown Valley Fair in San Jose, California, from The Rouse Company for US$107 million plus the assumption of debt.

Westfield America acquired 50% of Valley Fair in 1998 as part of the TrizecHahn portfolio. The centre, which is one of the United States premier shopping malls, has 105,700 square metres of retail space and is anchored by Nordstrom and two Macy’s department stores. It is currently undergoing a US$150 million redevelopment which will be opened in stages with final completion in the second half of 2001.

Westfield proposes to bring in a new joint venture partner to replace Rouse, which will provide funds for the reduction of debt and facilitate the funding of the redevelopment project.

Westfield America Trust has a 47% interest in Westfield America, Inc. the fourth largest mall REIT in the US which, following these transactions, will have a portfolio of 37 Westfield Shoppingtowns in eight states.