Unibail-Rodamco-Westfield (URW) has secured $925m of new financing for Westfield Century City shopping center in Los Angeles, California, as part of its ongoing financial planning.
The new financing is a two-year floating rate CMBS with the option for three oneyear extensions with a spread of 280.7bps over SOFR.
Fabrice Mouchel, Chief Financial Officer of URW, said: “This new financing for Westfield Century City increases optionality for URW with respect to the asset, and reinforces the Group’s liquidity. As stated at our H1 2023 results, the radical reduction of URW’s U.S. financial exposure remains the path forward. The strong business performance across all markets, our low cost of debt, our ample liquidity position, our tight capital expense control and our net debt-to-EBITDA ratio all provide us with flexibility on the timing of this process.”
Westfield Century City is a 1.4 million square foot Flagship asset that has demonstrated strong operational performance and is 95.4% leased.
The centre is 100% owned by URW and has no existing financing. Its value was independently appraised as mandated as a part of the process at $1.94 billion by Newmark Valuation & Advisory in May 2023, implying a loan-to-value ratio of 47.6%.
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