Westfield Group (WEFIF.PK, WDC.AX, WFGPY.PK) Sunday announced an agreement with O'Connor Capital Partners for some transactions that would lead to a joint venture investment in a portfolio comprising six Westfield regional malls in Florida, U.S.
Founded in 1983, O'Connor Capital Partners is a privately-held, independent manager, owner, operator and developer of real estate.
O'Connor's investment will represent a 49.9 percent interest in this portfolio that has a gross value of $1.283 billion. The price paid by O'Connor is equal to the Group's book value. Westfield will realize about $700 million in net proceeds from the transactions.
Westfield will remain as property, leasing and development manager on terms consistent with the Group's other joint ventures.
Westfield Group Co-Chief Executive Officer Peter Lowy said, "This agreement carries on the Group's strategy of introducing joint venture partners into our assets globally as well as disposing of non-core assets."
The transactions are dilutive to the Group's Funds from Operations in 2013, before the redeployment of capital, by around 1 cent per security. The dilution is expected to be offset by the redeployment of capital, including the on-market buyback of WDC securities.
Since the announcement of the Group's 2012 full year results in February, 19 million securities have been purchased under the buyback program for A$212 million.
The transactions are subject to financing and other customary closing conditions. They are expected to close in the second quarter.
WDC.AX is currently gaining 2 percent at A$10.98.
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