Westfield buys remaining 50% Newmarked stake

30 July 2004

Countries: New Zealand

The Westfield Group (ASX: WDC) today acquired the remaining 50% interest in the Two Double Seven shopping centre and adjacent land at Newmarket, in Auckland, New Zealand from its joint venture partner, Auckland One Ltd.

As a result of this transaction, Westfield will own 100% of Two Double Seven shopping centre and adjacent land.

“Westfield will continue with the planned development of Two Double Seven and is proposing to create a world-class retail offering for the people of Auckland,” said the Westfield Group’s managing director, Steven Lowy.

In August 2002, Westfield and Auckland One established a joint venture to collectively own and redevelop their joint land holdings in Newmarket. Under this previous arrangement, Westfield : -

• sold a 50% interest in its property holdings in Newmarket for $NZ26.5 million;
• acquired a 50% interest in Two Double Seven for $NZ71.9 million; and
• acquired a 50% interest in Auckland One's adjacent land holdings for $NZ22.8 million;

The settlement for this previous agreement was deferred until June 2007.

Under the terms of today’s transaction, Westfield will: -

• repurchase the 50% interest in its property holdings in Newmarket for $NZ26.5 million;
• purchase the remaining 50% interest in Two Double Seven for $NZ71.9 million; and
• acquire the remaining 50% interest in Auckland One's adjacent land holdings for $NZ22.8 million;

Of the total purchase price of NZ$189.4 million for Two Double Seven centre and adjacent land, NZ$156.9 million has been paid and is funded from the Group’s existing debt facilities. The balance of NZ$32.5 million will be paid in June 2007.

Whilst the transaction is accretive to earnings it has no material effect on the distribution forecasts for the periods to June 2006 as contained in the Explanatory Memorandum issued to investors in May 2004 as part of the merger of Westfield Trust, Westfield America Trust and Westfield Holdings Limited.

The Two Double Seven shopping centre currently has a total area of 12,700 square metres and comprises a Foodtown supermarket, 79 specialty shops and a further 9,100 square metres of office space. The retail centre is currently fully leased and at March 2004 had total annual retail sales in excess of NZ$116 million.