Westfield, the Australian operator of high-end shopping centers including the “Oculus” World Trade Center property in New York, Forum des Halles in Paris and the UK’s highest-revenue malls, is now owned by Europe’s biggest commercial property company.
Westfield strikes $32b deal with Unibail-Rodamco https://t.co/KMmjJ5U4kZ via @FinancialReview $WFD
— WestfieldCorporation (@westfieldcorp) December 12, 2017
As a result of a $24.7bn (£19bn) deal to acquire the shares of Westfield founder Sir Frank Lowy and family, Unibail-Rodamco of France is now the biggest shareholder in Westfield to become the world’s biggest shopping mall operator. The global retail empire, with some of the world’s most iconic properties and architecture, is now worth $72bn, according to the Financial Times.
As the press release (see below) notes, the merger creates “the world’s leading platform for global retailers and brand events, positioning the Group as a must-have partner for all global retailers across the most attractive markets in the United States and Europe.”
Jaap Tonckens, Unibail-Rodamco’s chief financial officer, told Bloomberg that shopping centers still have a future. “Especially younger people do their research on their phones and then go to malls to get what they want and to hang out with their friends and have a meal,” he said. “You are talking about people wanting an experience.”
According to the press release, “With 17 iconic flagship assets across 9 gateway cities representing 85% of its GMV (Gross Market Value), Westfield’s high quality portfolio is a perfect strategic fit for Unibail-Rodamco. The combination with Westfield’s platform will add highly attractive markets: London and the wealthiest catchment areas in the United States.”
“The Transaction will create the world’s premier developer and operator of flagship shopping destinations:
• A unique portfolio of 104 prime assets across 13 countries attracting over 1.2 billion visits annually ;
• The best shopping destinations in the world’s wealthiest cities such as London, Los Angeles, Munich, New York, Paris, San Francisco, San Jose, Stockholm, Vienna, Madrid and Warsaw;
• An average GMV per shopping centre of €599 million (€942 million for the flagship portfolio)[19], significantly ahead of all other large shopping centre REITs;
• A combination of two development pipelines for a total amount of €12.3 billion[20], with iconic developments in London, Milan, Hamburg, Brussels, Paris, San Jose, Lyon and other major cities. In addition to benefiting from the strong embedded organic growth potential, Unibail-Rodamco expects to capitalise on Westfield’s strong development and investment track record and know-how;
• The creation of the world’s leading platform for global retailers and brand events, positioning the Group as a must-have partner for all global retailers across the most attractive markets in the United States and Europe;
• Best-in-class management team, capitalising on each of Unibail-Rodamco’s and Westfield’s superior track records and strengths, with the support of their 3,700 employees.
Commenting on the transaction, Sir Frank Lowy AC, Chairman of the Westfield Board of Directors, said of the Westfield brand he built:
“The transaction announced today is the culmination of the strategic journey Westfield has been on since its 2014 restructure. We see this transaction as highly compelling for Westfield’s securityholders and Unibail-Rodamco’s shareholders alike. Unibail-Rodamco’s track record makes it the natural home for the legacy of Westfield’s brand and business. We look forward to seeing Westfield continue to grow as part of the world’s premier owner of flagship shopping destinations.”
Seems his $1,000 (Australian) investment in 1960 has paid off handsomely.
#Westfield sale to #Unibail caps Frank Lowy's brilliant career https://t.co/DsOXRo49E5 via @FinancialReview $WFD
— WestfieldCorporation (@westfieldcorp) December 13, 2017
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