Westfield denies plans to raise new equity

Unibail-Rodamco-Westfield Covid-19 pandemic
Westfield said it has not decided on its strategy for deleveraging
// Westfield parent company denies reports of mulling raising new equity
// Unibail-Rodamco-Westfield was reported to be aiming to raise £2.67 billion in new equity

Westfield has reportedly responded after reports emerged that the property giant is mulling raising new equity as the retail sector rides out Covid-19.

Reports last week suggested that shopping centre owner Unibail-Rodamco-Westfield (URW) was aiming to raise $3.5 billion (£2.67 billion) in new equity, according to Bloomberg.

However, Westfield said it has not decided on its strategy for deleveraging and is still weighing out the benefits of “all potential strategies”.


The company, which operates two Westfield shopping centers in the UK, said deleveraging remains a priority with its planned disposal of £3.5 billion in assets in the next couple of years.

The two UK shopping centres – Westfield Statford and Westfield London in White City – recorded a 27.5 per cent drop last month in net revenue income during the half-year period.

“No decision has been made yet on any of the available additional deleveraging options,” Westfield said in a statement.

URW said it has taken a number of steps in response to the pandemic, such as the cancellation of the second dividend instalment, deferring non-essential capital expenditures, a further reduction of the development pipeline and the disposal of five French shopping centres, Drapers reported.

As of June 30, URW had £11.5 billion of cash and undrawn credit facilities at its disposal.

It said that deleveraging is a priority for URW, starting with asset disposals as evidenced by its intention to sell £3.62 billion of assets in the next couple of years, on top of the £4.3 billion of disposals the group completed since June 30, 2018.

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