Westfield Group issues property linked notes
27 February 2007
The Westfield Group (ASX:WDC) today announced that it has agreed to issue Property Linked Notes (Notes) with an aggregate value of approximately A$250 million to a major global institution.
The return on the Notes is based on the economic performance of the following Australian shopping centre interests:
- 3.0% Westfield Parramatta, New South Wales
- 6.25% Westfield Hornsby, New South Wales
- 6.25% Westfield Burwood, New South Wales
- 3.0% Westfield Southland, Victoria
- 6.25% Westfield Belconnen, Australian Capital Territory
- 6.25% Westfield Tea Tree Plaza, South Australia
The Notes, which will be effective from 1 January 2007, have a value in aggregate of $249,950,000 based on the independent market value of the properties. These super regional and regional shopping centres have an aggregate value of approximately $5.3 billion and were valued on yields ranging between 5.0% and 5.35%.
The Notes are perpetual instruments with a first review date in 10 years, at which time the holder may elect to redeem the Notes. On redemption, the obligation to pay the amount due on the Notes can be satisfied, at Westfields option, by a transfer of the relevant interest in the underlying property. Subsequent reviews on the same terms are to occur each five years thereafter.
These Notes have been issued in respect of the same properties as the Property Linked Notes issued in January 2007. It is very pleasing to see this continuing demand for Australian retail property exposure through our Property Linked Notes, said Group Managing Director, Peter Lowy.
The Westfield Group (ASX Code: WDC) is an internally managed, vertically integrated, shopping centre group undertaking ownership, development, design, construction, funds/asset management, property management, leasing and marketing activities and employing in excess of 4,000 staff worldwide. It has investment interests in 121 shopping centers in four countries, with a total value in excess of A$60 billion and is the largest retail property group in the world by equity market capitalisation.