Fresh from buying Hammerson out of its 50/50 joint venture in Croydon, south London, Unibail-Rodamco-Westfield has said it is still committed to selling down its European portfolio and “radically” reducing its exposure to the US.
The firm, which has reported a slight uptick in revenue to €909m (£805m) in the first three months of 2023, said it would sell the remaining €800m of its €4bn European disposal target this year.
The group is also offloading the majority of its US assets and is currently in discussions to sell its Westfield Valencia project in California, having taken the decision to not repay the $195m (£156m) of debt secured on the property. The asset is currently valued at just over $100m. Last month, URW sold its Westfield North County ground lease, also in California, to Bridge Group Investments and Steerpoint Capital for $57m. It has 30 years left on the ground lease.
The firm said gross rental income across its existing portfolio had increased by 3% to €704.2m and strong leasing activity was buoying confidence. URW agreed 588 deals in Q1 2023, up by 27% on the same period in 2022.
Chief executive Jean-Marie Tritant said: “Continued growth in gross rental income across all divisions demonstrates the strong operational performance of our business and its effective hedging against inflation.
“Shopping centre tenant sales rose above core inflation, while robust leasing activity continues to underline the appeal of our flagship destinations.
“We signed a higher proportion of long-term deals at an increased minimum guaranteed rent, as major retailers continue to increase their store footprint with us as they focus on the most productive stores in prime locations.”
To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews
