Sharing shopping

Westfield, the world's largest shopping Centre developer, is looking to raise £1.3 billion in a new share placement...

The listed Australian developer said it was raising the funds to pay off group debt and to ‘position the group for further acquisitions.'

The group said it would issue 276 million shares at £4.69 a share - a discount to the current trading price of £5.45 a share.

Westfield said that following the placement its gearing would reduce by four per cent to a loan-to-value covenant of around 36 per cent.

Though its global shopping centres are well let - 99.5 per cent in Australia, 92.6 per cent in the US, 98.9 per cent in the UK and 99.5 per cent in New Zealand - Westfield did see its occupancy levels hit by the recession.

In the US, its portfolio suffered a 6.8 per cent fall in retail sales and a 1.5 per cent drop in the amount of space leased over the last year at 30th December 2008, while in the UK let space fell by 0.7 per cent and in New Zealand by 1.2 per cent

However, in Australia, its portfolio saw retail sales rise by 3.6 per cent for the year to 30 December compared to last year - including 1.6 per cent in the last quarter of 2008.

Last week the group warned of a £1.34 fall in the carrying value of its shopping centres.

Source: www.propertyweek.com