In what appears to be one of the largest retail investment sales transactions year-to-date, Australian mall operator Westfield announced a joint venture agreement with Canada Pension Plan Investment Board (CPPIB) for an ownership stake in 10 of Westfield’s U.S.-based regional malls and two development sites. CPPIB will pay $1.8 billion in equity, in addition to assuming property-level debt, in exchange for a 45 percent share in the centers.
Westfield will continue to serve as the property manager, leasing agent and developer for the assets. The transaction should close in the first quarter of 2012.
Nine of the centers involved are located in California, including the 1.6-million-sq.-ft. Westfield Topanga in Canoga Park and the 1.5-million-sq.-ft. Westfield Mission Valley in San Diego. In addition, the venture will include 1.6-million-sq.-ft. Westfield Southcenter in Tukwila, Wash. and 1.4-million-sq.-ft. Westfield Annapolis in Annapolis, Md. Overall, the portfolio totals more than 13.5 million sq. ft. of retail space. The malls produce on average $456 per sq. ft. in sales.
Read the full article on National Real Estate Investor.