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Friday, November 13, 2015

Westfield sells Californian mall to US REIT for $238 million

Letter of Invitation: I would be available to answer any queries regarding best suburbs to integrate socially, just to let you know 21 suburbs of South Australia which are red-flagged by Australian banks. I am happy to provide detail answers to any questions with reference to Property Investment, Subdivision, Development, Buying/ Selling Residential, Commercial, Rural Properties and Businesses. I am available in person (Tue/Thu at 1289 South Rd, St. Marys, SA 5042 12 to 5 p.m) or on cell to answer any questions, and concerns you have to decide about your Real Estate. (Cell: 0431 138 537, Email: Saqlain@Dukesrealestate.com) Click here to invest in South Australian Residential Commercial, Rural Properties, Schools & Businesses. Westfield Corporation, the owner and operator of Westfield malls in the United States, Britain and Europe, has sold its Carlsbad mall in California to US listed mall owner Rouse Properties for $US170 million ($238 million) as it continues to divest non-core malls and focus on flagship centres in global cities such as New York and London. The deal comes as Frank Lowy-chaired Westfield Corp announced that in the September quarter, specialty sales increased 8.1 per cent for its flagship holdings, while rising a more modest 4.6 per cent at its regional centres. In October, Westfield Corporation said it has chosen all the retailers for the World Trade Centre in New York, fully leasing the $US1.4 billion development well ahead of its opening next year. The 102,000-square-metre mall in the affluent seaside resort town of Carlsbad, about an hour north of San Diego, is leased to 150 retailers, including Macy's, Forever 21, LOFT and Victoria's Secret. It also has a 12-screen cinema. New York-listed Rouse, which owns 36 malls in 21 US states, will rebrand the centre as The Shoppes at Carlsbad and undertake a comprehensive renovation. The acquisition was funded through the issuance of $140 million of preferred operating partnership units to Westfield. These preferred equity units carry a five per cent coupon and are redeemable by Rouse Properties after a three-year lockout date, or by Westfield after 10 years, in the form of cash or common stock. In the wake of Thursday's quarterly update, Macquarie Securities confirmed its outperform rating on Westfield with a 12-month price target of $12.13. Rising bond yield Related Quotes WFD WESTFIELDC STAPLED (WFD) $9.66-0.02-0.21% volume 5490120value 53156809.0 5 years 1 Day Apr15Dec14GMT+1000 (AUS Eastern Standard Time)Jun14Nov15-1-0.500.5189107.15410.064 Last updated: Sat Nov 14 2015 - ‎4‎:‎03‎:‎41‎ ‎PM View full quote Company Profile Real Estate Investment Trusts (REITs) (404020) ASIC ASX Announcements 13/11/15 Westfield Corporation Rouse Properties Media Release 12/11/15 Ceasing to be a substantial holder from AMP 12/11/15 Westfield Corporation - 3rd Quarter Update 5/11/15 Becoming a substantial holder from AMP 29/9/15 Westfield Corp Prices US$1.0B of Senior Guaranteed Notes View all announcements Analyst, Paul Checchin wrote that the Real Estate Investment Trusts, in general, were likely to underperform against a rising bond yield environment. However, Westfield had the "potential for a value-affirming restructure"; it will have "material earnings" from apartment developments that are not yet factored into consensus; it has a currency tailwind with earnings in $US; and its net asset value will be supported "as the the development pipeline converts to prime retail assets." UBS also has a buy on the stock. Analyst Grant McCasker, described the metrics in Westfield's flagship centres as "best in class" and he is also looking for a re-rating of the stock. Next May Westfield is expected to report back on the location of its long-term listing. At the same time, the next flagship project, the Westfield World Trade Centre will open in New York, increasing Westfield's brand in the US. Read more: http://www.afr.com/real-estate/westfield-sells-californian-mall-to-us-reit-for-238-million-20151112-gkxzm1#ixzz3rRQVjxMW Follow us: @FinancialReview on Twitter | financialreview on Facebook

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