French malls giant Unibail-Rodamco-Westfield (URW) has sold The Village, an outdoor lifestyle destination in the San Fernando Valley of Los Angeles, to the Kroenke Organization.
The Village – Photo: URW
The total sale price was $325 million, of which URW’s share was 55%. The price reflects an initial yield of 5.6% on the in-place Net Operating Income, and a 10.6% discount to the last unaffected appraisal.
Seven-year-old The Village covers 600,000 sq ft next to the Promenade development site, of which URW also owned 55% and that was recently sold for $150 million.
URW’s flagship property in the area, Westfield Topanga, wasn’t part of the transaction.
But URW said in 2021 that it planned to sell all 24 of its US properties by the end of 2023.
The latest disposal means the company has made $1.1 billion in total proceeds to date from the planned reduction of its US business.
CFO Fabrice Mouchel said: “This transaction is another step in the streamlining of our US regional asset portfolio as part of our wider plan to radically reduce our financial exposure to the US, and demonstrates the continued investor interest in high-quality assets with strong operating performance.”
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