Westfield Century City Secures $925 Million Refi Deal

The owner of Westfield Century City mall is securing a nearly $1 billion financing windfall for the second time in two years, returning more equity to the owner.

Unibail-Rodamco-Westfield is nearing a refinancing deal for the 1.4-million-square-foot shopping center totaling $925 million in commercial mortgage-backed securities, Commercial Observer reported. The five-year deal is expected to close July 22.

Bank of America, Goldman Sachs, Morgan Stanley, Santander Bank and a Deutsche Bank affiliate are expected to co-originate the debt, according to a report by Fitch Ratings cited by CO. The funds would be used to replace another $925 million CMBS package originated by Morgan Stanley in 2023. The Santa Monica Boulevard property has no other debt at the moment, a URW spokesperson told CO.

Unibail-Rodamco-Westfield purchased the mall in 2002 for $165 million and completed numerous upgrades to the property since then. In 2017, the European mall giant finished a $1 billion renovation project. In May of this year, the mall was valued at more than $2 billion, according to an appraisal by Newmark. The new loan package, then, means the property has a loan-to-value ratio of 45.3 percent.

Vacancy also isn’t much of an issue at the shopping complex. It currently maintains a 95.6 percent occupancy rate with more than 250 tenants, according to CO.

URW’s doubling down on Westfield Century City reflects the Paris-based conglomerate’s commitment to focusing on fewer, more profitable properties in the U.S. The company sold off large portions of its holdings in recent years due to a poor financial outlook. In California, that included the Westfield Santa Anita for $537.5 million; The Village in Los Angeles’ San Fernando Valley for $325 million; and the Westfield Mission Valley in San Diego for $290 million.

“We have made the strategic decision to retain our high-performing flagship assets in the U.S., which will deliver further growth and value creation,” Jean-Marie Tritant, CEO of Unibail-Rodamco-Westfield, said in a statement earlier this year.

— Chris Malone Méndez