Unibail-Rodamco-Westfield (ASX:URW) Acquires 38.9% Stake in URW Germany
Transaction Overview
Unibail-Rodamco-Westfield (URW) has announced the acquisition of a 38.9% stake in URW Germany GmbH from joint venture partner Canada Pension Plan Investment Board (CPP Investments). This acquisition, conducted off-market, raises URW’s ownership in URW Germany to 89.9%. The existing shareholders’ agreement allows both partners to discuss the potential transfer of CPP Investments’ remaining 10.1% stake in 2025 for a cash consideration of up to €65 million.
Financial Details
The transaction is financed by the issuance of 3.254 million new URW stapled shares, equating to approximately 2.2% of URW’s diluted share capital. These shares will be provided to CPP Investments in exchange for their 38.9% stake. URW Germany holds significant assets, including five shopping centres in Germany and €416 million in cash, including net proceeds from a recent sale.
Impact on Financial Position
The acquisition is expected to be EPRA NTA neutral for URW and enhances the company’s proforma IFRS LTV by approximately 20 basis points. Moreover, this move increases URW’s cash position and flexibility regarding the five German assets. There will be no impact on URW’s 2024 AREPS guidance as a result of this transaction.
Executive Commentary
URW’s Chief Executive Officer commented, “This strategic acquisition strengthens URW’s foothold in Germany’s retail market, allowing us to further enhance our operational capabilities and financial position.” This assertion highlights URW’s commitment to growing its influence in key European markets.
Ongoing Partnerships
This acquisition does not disrupt URW’s other joint ventures and co-investments with CPP Investments, including assets such as Westfield Stratford City and Westfield Centro.
About Unibail-Rodamco-Westfield
URW is a leading owner, developer, and operator of high-quality real estate assets across Europe and the United States. The company is committed to sustainability and urban regeneration, enhancing the communities it serves.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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