Westfield America, Inc. (NYSE:WEA) issue $75 million of commercial mortgage notes and announces the redevelopment of Mission Valley West
Countries: United States
Los Angeles, CA, February 9, 1998 – Westfield America, Inc. (NYSE: WEA) today announced the sale of seven-year Commercial Mortgage Notes (“CMBS”) in a $75 million combined refinancing of the first mortgages on Mission Valley Center and Mission Valley West, located in San Diego, California. Mission Valley Center is a 1.3 million square foot super-regional shopping center and Mission Valley West is a 202,000 square foot retail center which is being redeveloped into a power strip center.
Proceeds from the financing were used to repay the existing loan of $44 million, which bears interest at LIBOR plus 1.45%. The remaining proceeds will be used to fund the redevelopment of Mission Valley West.
The entire issuance was rated ‘A’ by Standard & Poors and carries an effective fixed interest rate of 6.78%, representing a spread of 105 basis points over the 7-year Treasury rate. Union Bank of Switzerland provided a letter of credit which will serve as credit enhancement until the completion of the redevelopment of Mission Valley West. The transaction, which closed on December 30, 1997, was managed by UBS Securities, LLC.
Mission Valley West will be redeveloped into a power center with BORDERS BOOKS, MARSHALL’S, OLD NAVY, JUST FOR FEET, KOO KOO ROO and THE GORDON BIERSCH BREWING COMPANY as tenants. Demolition of the existing center was started on January 15, 1998, with completion of the power center planned for late summer 1998.
Westfield America, Inc. (NYSE: WEA), a real estate investment trust, is one of the nation’s leading owners of regional retail centers. With the recent acquisitions of Northwest Plaza and Crestwood Plaza in St. Louis, Missouri, the Company owns 25 major shopping centers in 10 metropolitan areas in the states of California, Colorado, Connecticut, Maryland, Missouri, New York and Washington.