Westfield Group (WDC), APG and Canada Pension Plan Investment Board (CPPIB) have reached an agreement for WDC sell a 50% interest in the retail component of Westfield Stratford City for £ 871.5 million to a new joint venture between APG of The Netherlands and CPPIB.
The transaction values the retail component of Westfield Stratford City at £ 1,743 million. APG and CPPIB will each own a 25% indirect interest.
Westfield Stratford City, which is located adjacent to the site of the 2012 London Olympics, is primarily focused on the creation of a 1.9 million square foot major retail and entertainment destination, due for completion in the third quarter of 2011.
Graeme Eadie, senior vice-president, real estate investments with CPPIB said, “We are pleased to be investing alongside our established partners APG and Westfield to acquire a high quality shopping centre like Westfield Stratford City, which we believe will deliver stable cash flows and good growth prospects over the long-term. The investment is fully aligned with CPPIB’s U.K. real estate strategy to acquire prime retail shopping centres with best-in-class partners.”