SAN JOSE — A European actual property titan now plans to maintain a giant chunk of its portfolio of procuring facilities in the US — probably together with two it owns within the South Bay — as a result of their top-notch efficiency.
Westfield Valley Truthful and Westfield Oakridge, two massive procuring malls in San Jose, could be retained by France-based actual property agency Unibail-Rodamco-Westfield as a result of a shift within the firm’s technique for its property holdings in the US.
The brand new line of considering was disclosed throughout a current convention name held to debate the Unibail-Rodamco-Westfield (URW) monetary and working outcomes for 2024.
URW Chief Govt Officer Jean-Marie Tritant sketched out the shift in technique throughout his presentation to kick off the convention name with analysts.
Tritant first described URW’s quest to unload or in any other case get rid of a number of procuring facilities within the U.S. in a push to slash its money owed and mortgage funds.
“Over the past 4 years, we have reshaped our portfolio through disposals, made significant deleveraging progress, enhanced our operations and transformed the group’s risk profile,” Tritant stated through the early phases of the convention name.
The corporate CEO then famous that the hassle was full. This success has enabled the corporate to shift its method to its holdings in the US.
“Having achieved this transformation, we have taken the strategic decision to retain our high-performing U.S. flagship assets, which will deliver further growth and value creation,” Tritant stated.
Of essential significance: Unibail-Rodamco-Westfield didn’t exactly specify or outline what’s a “high-performing U.S. flagship” shopping center.
In years previous, nevertheless, URW executives have referred to malls comparable to Westfield Valley Truthful on Stevens Creek Boulevard in western San Jose as one in all its flagship procuring, retail and restaurant facilities in the US.
URW executives in February 2024 stated energetic negotiations have been underway to promote Westfield Oakridge on Blossom Hill Street in south San Jose.
In July 2024, nevertheless, URW revealed that the timeline had slipped for the attainable sale of the Oakridge procuring heart.
“On July 11, 2024, URW extended the exclusivity period for the sale of Westfield Oakridge,” Unibail Rodamco Westfield acknowledged within the earnings presentation. “URW had received a nonrefundable deposit of $30 million.”
In its most up-to-date convention name in addition to supporting paperwork for the 2024 outcomes, URW didn’t present an replace on the standing or potential timeline for a attainable sale of Westfield Oakridge.
URW did observe that in the US market, “the tenant mix continued to evolve in line with market trends with the opening of exciting retailers” comparable to Uniqlo at Westfield Oakridge, the corporate acknowledged in its report for 2024.
Westfield Valley Truthful is one in all 11 “flagship” procuring facilities, together with 5 in California, that URW owns in the US. Valley Truthful can be the one URW flagship within the Bay Space.
Westfield Oakridge is listed as one in all 4 “regional” procuring facilities within the U.S., together with two in California.
Unibail-Rodamco-Westfield additionally famous that it had beforehand unloaded — via a foreclosures — a dying procuring heart in San Francisco on Market Road that has misplaced the overwhelming majority of its tenants.
The emptiness ranges on the firm’s flagship malls in the US additionally was fairly encouraging, URW Chief Monetary Officer Fabrice Mouchel acknowledged through the convention name.
“U.S. flagship vacancy stood at 6.2%, down from 7.3% in 2023 and below pre-COVID levels of 7.7% and its 2020 peak of 12.5%, showing the recovery in the U.S. and the appeal of our prime assets for retailers,” Mouchel informed the analysts on the convention name.
Firm officers did warn it’s attainable extra U.S. procuring facilities might nonetheless wind up on the gross sales block, as the corporate’s technique evolves.
“Our deleveraging is not yet complete,” Tritant stated.
The corporate may once more ponder procuring heart gross sales in the US beginning in 2026.
“We’ll see what is the right level of additional disposals that we need to do after 2025,” Tritant stated. “We’ll continue to make sure we have fully streamlined our portfolio of assets and activities.”
Initially Revealed: February 18, 2025 at 10:15 AM PST
