Unibail-Rodamco-Westfield (URW) has sold The Village, an outdoor lifestyle destination in the San Fernando Valley of Los Angeles, to the Kroenke Organization for $325 million.
The company said the sale price (URW share 55%) reflects an initial yield of 5.6% on the in-place net operating income and a 10.6% discount to the last unaffected appraisal.
The Village is an A+-rated, 600,000 square foot property located next to the Promenade development site, which URW recently sold for $150 million (at 100%, URW share 55%). URW’s flagship property in the area, Westfield Topanga, was not a part of the transaction.
With the sale of The Village, URW has made $1.1 Bn in total proceeds to date from the planned reduction of its financial exposure to the US, including the sales of Westfield Santa Anita for $537.5 Mn (URW share 49%), the Promenade development parcel for $150 Mn (URW share 55%), the Palisade residential building for $238 Mn (URW share 50%), and the ownership transfer of five other regional properties.
Fabrice Mouchel, Chief Financial Officer of URW, said: “This transaction is another step in the streamlining of our US regional asset portfolio as part of our wider plan to radically reduce our financial exposure to the US, and demonstrates the continued investor interest in high quality assets with strong operating performance.”