Westfield Buys TrizecHahn's Portfolio
Westfield America Inc. became the largest owner of regional shopping malls both in Los Angeles and statewide after its $1.4 billion acquisition of TrizecHahn Corp.'s portfolio was completed in November.
The deal added 13 more malls to Westfield's portfolio of 25 shopping centers. Three of the former TrizecHahn malls are in the L.A. area Santa Anita Fashion Park in Arcadia, Los Cerritos Center and Fox Hills Mall in Culver City. Earlier this year, Westfield purchased The Promenade in Woodland Hills.
The acquisitions are strategic; owning more than one mall in a given area carries certain competitive advantages for marketing, company officials have said.
Brentwood-based Westfield, a publicly traded real estate investment trust with roots in Australia, specializes in turning around under-performing malls, as it did with the Westside Pavilion (which it no longer owns), Topanga Plaza and Eastland Shopping Center in West Covina. Its strategies include enclosing open-air strip centers or converting poorly performing malls into power centers.
Look for more changes at Westfield properties. The company plans to spend about $2 billion on improvements at its 38 shopping centers over the next 10 years.
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