Here’s who’s buying Australian developer Westfield and what it means for malls

The buyer is Franco-Dutch retail giant Unibail-Rodamco

New York Weekend Edition /
May.May 06, 2018 04:18 PM

Westfield Sydney. (Credit from back: Mw12310/Wikimedia Commons, Nick Youngson)

Westfield’s soon-to-be buyer, Unibail-Rodamco, is making moves on American shopping malls.

The European retailer owns a $52 billion portfolio in Europe and, once the purchase of Westfield is approved by shareholders, it will own the Australian developer’s $22 billion worth of American and U.K. malls, according to the Wall Street Journal. The deal is expected to close next month.

Though Unibail’s stock values are down, indicating shareholders may not be thrilled to see the company take on debt to the tune of what analysts estimate is more than 40 percent of their total portfolio’s value, the combination of Westfield and European retail giant holds some long-term promise, at least to the Journal: Westfield’s bringing high-end properties to the table while Unibail has a track record of cycling tenants through its malls quickly and raising rents. The combination of the two could represent a new era for malls with this deal.

With Westfield, Unibail will be almost the same size as its American counterpart Simon Property. [WSJ]Erin Hudson


Related Articles

arrow_forward_ios
David Schonbraun (SL Green)
SL Green investment chief David Schonbraun steps down
SL Green investment chief David Schonbraun steps down
Aby Rosen and 522 Fifth Avenue (Getty, Google Maps)
RFR pitches Fifth Avenue office building as “build-to-suit” corporate HQ
RFR pitches Fifth Avenue office building as “build-to-suit” corporate HQ
Nearly half of new shops in 2021 will be dollar stores. (Getty)
2021 is raining dollar stores
2021 is raining dollar stores
National chains and mom-and-pop stores are seeing increasing sales per square foot and shrinking occupancy costs (Getty)
National chains paid 93% of rent in April
National chains paid 93% of rent in April
(RIPCO, iStock)
Target, Five Below, Smashburger open in new Brooklyn shopping center
Target, Five Below, Smashburger open in new Brooklyn shopping center
Close to 80 hotels with more than 13,000 rooms plan to open in 2021. (iStock)
Big year seen for hotel openings, despite few visitors
Big year seen for hotel openings, despite few visitors
Savanna’s Christopher Schlank and Nicholas Bienstock with a rendering of 141 Willoughby Street (Savanna; SLCE Architects; Fogarty Finger Architects)
Savanna nabs $264M loan for Downtown Brooklyn office project
Savanna nabs $264M loan for Downtown Brooklyn office project
Blackstone president Jon Gray and the Blackstone headquarters at 345 Park Avenue in NYC (Getty, Google Maps)
Blackstone sets office return for some vaccinated staffers
Blackstone sets office return for some vaccinated staffers
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...