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Westfield closes on Garden State Plaza, Fashion Square Sherman Oaks deal

Westfield America Trust has closed on the sale of a 25 percent stake in Westfield Shoppingtown Garden State Plaza, Paramus, N.J., to a U.S. affiliate of British insurer and fund management firm Prudential plc and, as part of the deal, the purchase of a 50 percent share in Fashion Square Sherman Oaks (Calif.) from the same company.

Prudential paid a total of $193.8 million — $128.8 million in cash and $65 million in mortgage debt — for the portion of the 2 million-square-foot Garden State Plaza, considered one of the most upscale and successful centers in the New York City area, with an option to acquire a further 15 percent interest in the super-regional for $116.3 million between May 2004 and May 2005.

Westfield acquired a full interest in Garden State Plaza in January as part of Dutch company Rodamco North America’s mall portfolio breakup; Westfield had held a 50 percent interest in the mall, one of the Los Angeles-based company’s trophy properties, since 1986. The company expanded the mall in 1996, when it added Lord & Taylor, Neiman Marcus and 235,000 square feet of specialty stores.

Meanwhile, Westfield paid Prudential $67 million for its share of the two-level, 848,000-square-foot Fashion Square Sherman Oaks, which has 120 specialty shops and is anchored by Bloomingdales and Macy’s. The regional mall was first opened in 1962 and was last renovated in 1996, when it added Bloomingdales. Prudential retains a half-ownership of the center. Westfield now has ownership in 12 centers in the Los Angeles area.

Westfield Shoppingtown Garden State Plaza has sales per square foot of $505, and Fashion Square Sherman Oaks achieves sales per square foot of $402, according to the Directory of Major Malls.

Westfield owned by Sydney, Australia-based Westfield Holdings, is the third-largest owner of malls in the United States, and it has steadily been expanding and upgrading its portfolio. It announced on Dec. 18 it was purchasing the 425,000-square-foot Southgate Plaza, Sarasota, Fla., a regional mall, for $62 million.

Compiled by the staff of Shopping Centers Today. © December 30, 2002 International Council of Shopping Centers.