Westfield Group and AMP have restructured their portfolio ownership of seven Australian shopping centres with a combined gross value of $5.8 billion.
“I am pleased that we have been able to complete this complex transaction that realigns the ownership and management of these centres and achieves the objectives of all parties,” WDC co-CEO Steven Lowy said.
“Our relationship with AMP spans over 50 years and has included joint venture ownership of many assets as well as the provision of development, design, construction and property management services.
“This transaction is a further evolution of our partnership with AMP, which we expect to continue for many years to come.”
As part of the plan, Westfield will acquire for $344 million from AMP a 10 per cent interest in Knox City in Melbourne; 12.5 per cent interest in Mount Gravatt in Brisbane; and 12.5 per cent interest in Warringah Mall in Sydney.
Meanwhile, Westfield will sell to AMP for $547 million a 22 per cent interest in Pacific Fair on the Gold Coast; 12.5 per cent interest in Booragoon in Perth; and 27.7 per cent interest in Macquarie Centre in Sydney.
Westfield will also remain joint venture partners with AMP and Westfield Retail in four assets with gross value of $4 billion including Southland in Melbourne, Tea Tree in Adelaide and Liverpool in Sydney.
Post transaction, Westfield will own a 50 per cent interest in Mount Gravatt in joint venture with Westfield Group who owns the other 50 per cent; a 25 per cent interest in Warringah in joint venture with AMP who owns 50 per cent interest and Westfield Retail the other 25 per cent; and a 25 per cent interest in Knox in joint venture with State Super who has a 50 per cent interest in the property and Westfield Retail a 25 the remaining 25 per cent.
“Both Warringah and Knox are in the top 10 centres in Australia with annual retail sales in excess of $700 million and both centres have exciting redevelopment potential,” Lowy said.
However, under this plan it also means Westfield will no longer have ownership interest in Pacific Fair, Booragoon and Macquarie. But the company will be appointed by AMP to the design and construct roles at these centres, including the $390 million redevelopment of Macquarie, which will now commence.