Westfield on prowl for properties & companies

CASHED up shopping centre giant Westfield is on the lookout for retail assets as well as property companies.

The group yesterday raised $2 billion through the re-introduction of its dividend reinvestment plan raising liquidity to $5.8 billion. Westfield’s gearing was at 33% after raising $10.5 billion of equity in recent years. The group has six projects underway at a cost of $4.2 billion.

Joint managing director Steven Lowy yesterday indicated that it is business as usual.

Lowy believes the behemoth can continue grow, he said the group is on the lookout to takeover companies or buy assets that might be put up for sale.

“If you hold to the rules we’ve followed the last four or five years, if the markets keep going, then you’ll get a feel for how we probably look at these things, and it could either be a company or a set of assets,”

The group currently manages 119 shopping centres – 44 in Australia, 55 in the United States, eight in the United Kingdom, and 12 in New Zealand, totalling 10 million sqm of space, worth around $63 billion.

Lowy said despite global retail conditions softening, the group’s portfolio has maintained an occupancy rate of 97.3%.

“Capital markets have deteriorated substantially, despite these conditions, the group remains in a strong financial position and we confirm the previous 2008 guidance provided to the market,” joint managing director Peter Lowy said.

Lowy reaffirmed Westfield’s 5.5% growth in operational earnings and announced a distribution of 106.5 cents per security for the 2008.

Westfield shares traded 4 cents lower to close at $14.51.

Australian Property Journal