Shopping centre operator Westfield Corporation has completed the sale of five malls in the United States for $US1.1 billion.

Westfield will use proceeds from the sale to reduce gearing and to help fund the group’s $US11.4 billion development program.

“Our strategic focus is to create and operate flagship assets in leading markets and divest non-core assets,” Westfield Corporation co-chief executive, Peter Lowy, said in a statement on Monday.

“Today’s announcement marks a significant milestone in our divestment strategy.”

Lowy said Westfield’s investment program was almost entirely weighted towards flagship assets with development yields of seven to eight per cent.

The five malls that have been sold are Connecticut Post, Fox Valley, Hawthorn, MainPlace, and Vancouver.

The buyer is a newly formed joint venture comprising Centennial Real Estate, Montgomery Street Partners and USAA Real Estate. Westfiled will retain a 20 per cent non-managing equity interest.

Westfield securities were 14.5 cents lower at $9.555 at 1218 AEDT.

AAP

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