Westfield America, Inc. (NYSE:WEA) to acquire the Rouse Campany interest in Westfield Shoppingtown Valley Fair – the company to sell Westfield Shoppingtown Cerritos
Countries: United States
Los Angeles, CA, May 6, 1999 – Westfield America, Inc. (NYSE: WEA) announced today that it would acquire the remaining 50% interest in Westfield Shoppingtown Valley Fair, in San Jose, CA from The Rouse Company for $107 million plus the assumption of debt, giving Westfield 100% ownership of the property.
Westfield America also announced that it is selling its Westfield Shoppingtown Cerritos, in Cerritos, CA to The Macerich Company, a Los Angeles-based real estate investment trust. Macerich is purchasing 100% of the super regional shopping center for $93 million plus the assumption of debt. Both transactions are expected to be finalized by the end of the quarter.
Westfield Shoppingtown Valley Fair is one of the premier regional shopping malls in the country. It was opened in 1986 and has 1,140,000 square feet. It is anchored by Nordstrom and two Macy’s stores, and has 158 specialty stores. Total sales in 1998 at Valley Fair were $522 million and the specialty stores produced $648 per square foot of sales. Westfield and Rouse acquired the center as part of the acquisition of the TrizecHahn portfolio last year.
A $150 million redevelopment is underway at Westfield Shoppingtown Valley Fair. The company intends to bring in a joint venture partner for a 50% interest in Valley Fair to help finance the current expansion. The redevelopment will include a 225,000 square foot Nordstrom and approximately 275,000 square feet of specialty stores. It will be completed in stages with total project completion planned for fall 2001.
Cerritos, with 1,306,000 square feet, is anchored by Nordstrom, Macy’s, Robinson’s-May, Sears and Mervyn’s and has 168 specialty stores. In 1998, total sales at Cerritos were approximately $319 million and the specialty stores produced $338 per square foot of sales. The center was opened in 1971 and was purchased by Westfield in November 1998 as part of its acquisition of the TrizecHahn portfolio.
Westfield America, Inc. (NYSE: WEA), a real estate investment trust, is one of the nation’s leading owners of regional shopping centers. After the completion of the Cerritos transaction, the company will own interests in 37 major shopping centers, branded Westfield Shoppingtowns. Westfield Shoppingtowns are home to more than 4,600 specialty stores, serve 10% of the U.S. population and comprise 34.6 million square feet of leasable space in California, Colorado, Connecticut, Maryland, Missouri, New York, North Carolina and Washington.