The Australian shopping centre company is being bought for $24.7bn by European commercial property giant Unibail-Rodamco. Westfield owns 35 sites across the UK and US, while Unibail-Rodamco currently owns 71 shopping centres across Europe. The takeover will see the Westfield brand launched in new markets, says Unibail-Rodamco.
The move comes during a time of hardship for the shopping centre industry, which has lost out to e-commerce platforms. A joint statement from the pair said the move would save them €100m ($118m).
Why It’s Important
“Unibail-Rodamco has been selling smaller and less dominant assets in its European retail portfolio and reinvesting the proceeds in its development pipeline which includes larger malls which are expected to be more resilient to the growth of online shopping,” say reporters at Bloomberg. Consolidation appears to be happening across the industry as shopping centre groups see their share prices fall. The Westfield Group’s share price fell 9.6% this year.
Other Takeover Bids
Last week Hammerson, a British property development and investment company and owner of Birmingham’s Bullring, announced a £3.4bn bid for rival Intu, who owns Manchester’s Arndale shopping centre.
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