Westfield agrees on joint venture for nine UK shopping centres
15 May 2000
Countries: United Kingdom
Westfield Holdings today announced it had reached anin-principle agreement and has an exclusivity agreement with MEPC,one of the United Kingdom’s leading property companies, to form ajoint venture to own nine shopping centres in the UK.
Westfield will manage and develop the properties on behalf ofthe joint venture.
This transaction is subject to documentation and due diligencewhich is expected to be completed by the end of July.
The Chairman of Westfield Holdings, Mr Frank Lowy AC, said thetransaction represented a significant opportunity for Westfield tobe a major participant in the UK shopping centre industry.
These shopping centres are valued at in excess of 900million (A$2.4 billion) and comprise 290,000 square metres ofretail space and about 860 retail outlets. They are located inprime, town centre and urban locations and several of the centreshave significant redevelopment potential.
The centres are: Royal Victoria Place, Tunbridge Wells and TheFriary, Guildford; Two Rivers Retail Park, Staines and KensingtonShopping Arcade – all located in the Greater London area; EagleCentre, Derby; Castlecourt Shopping Centre, Belfast; Brunel Centre,Swindon; Millgate Shopping Centre, Bury; and Yate Town ShoppingCentre.
The joint venture will finance the properties throughnon-recourse mortgage loans with the partners contributing therequired equity on a 50:50 basis. Westfield’s equity contributionwill be funded from internal resources.
The MEPC transaction follows Westfield’s first venture in the UKannounced in February this year – a A$1 billion joint venture withHermes to own the Broadmarsh Centre in Nottingham which will bemanaged and redeveloped by Westfield.