Westfield is in discussions to sell out of three of its shopping centres as part of a strategy to concentrate on its larger UK assets.
The Australian shopping centre owner and developer is understood to be in talks to sell its 50% stakes in 319,000 sq ft Royal Victoria shopping centre in Tunbridge Wells, Kent, the 149,700 sq ft Friary mall in Guildford, Surrey, and the 332,300 sq ft Castlecourt shopping centre in Belfast to its joint venture partner, Hermes Real Estate.
Hermes is said to have teamed up with another partner to make the purchase for close to £400m.
The malls are part of a nine-strong portfolio that Westfield bought in a joint venture with MEPC in 2000. The £930m deal marked Westfield’s first significant entrance into the UK market.
Hermes had previously attempted to exit the malls itself and in August 2010 appointed CBRE to review options for Westfield Derby and Castlecourt.
However, the sales never progressed.
Westfield’s disposal of the malls is in line with proposals announced by founder Frank Lowry in its most recent results to reduce its “exposure to less productive assets in the US and UK”.
Last month, Westfield agreed to sell its 75% interest in the Broadmarsh shopping centre in Nottingham to Capital Shopping Centres for £55m.
It has also been in talks to sell a 50% stake in its stalled 550,000 sq ft Broadway shopping centre development in Bradford, West Yorkshire, to Dutch investor Meyer Bergman for around £120m.
The Australian group is increasingly focusing its investment on larger, iconic centres particularly in London, such as Westfield London and Westfield Stratford City, and now Croydon.
Westfield and Hermes declined to comment.
