More Details Of Solano Mall Sale

The Westfield Group announced Wednesday it is selling eight "non-core shopping centres in the U.S." for $1.154 billion.

Westflied Group said in a rpess release that Connecticut-based Starwood Capital Group will own a majority interest in seven of the centers, including Solano Mall.

According to Australia-based Westfield Group:

"Today's announcement represents a further step in our strategic plan to increase return on equity and long term earnings growth. The proceeds from the transactions will initially pay down corporate debt and then be redeployed in higher return redevelopment opportunities in the U.S., including the World Trade Center," Westfield Group Co-CEO Peter Lowy said.

"We have previously flagged the potential divestment of non-core assets in the U.S. and this transaction is an important step in the repositioning of our portfolio to major retail assets with strong franchise characteristics."

Also according to Westfield's press release:

Starwood has formed a new retail platform that will acquire majority interests in seven shopping centres from Westfield with a value of approximately US$1.0 billion. Starwood will manage and control the platform with Westfield retaining a 10% interest.

The assets involved in the Westfield/Starwood transaction are as follows:

The centres have aggregate sales per square foot of $373 and were 93.8% leased as of 31 December 2011, excluding Metreon, which is currently under redevelopment with a new Target opening in the Fall 2012.

The Starwood transaction is expected to close in the second quarter of 2012.

Starwood representatives did not return phone calls in time for this update. Their comments will be included in an update when those calls come in.