Westfield to use sale proceeds for redevelopments, buybacks

Westfield Group (ASX: WDC) will reportedly reinvest the proceeds from its sale of seven US shopping centres into new developments and its share buyback program.

The group sold seven of its non-core shopping centres to private global investment firm Starwood Capital Group for around $1.75 billion. The sale of the portfolio was part of the group’s key strategy to divest from non-core assets with little development potential to instead focus on redeveloping and expanding its primary centres.

The Australian Financial Review quoted Simon Scott, head of equities research at Moelis & Company, as saying “some of the funds will be used to meet its share buyback target of 15 per cent and some will be put into its development pipeline, which includes projects at the World Trade Center, New York and Milan.”

The market reacted positively to the group’s decision, sending the shares up 1.1% on Monday before retracting slightly yesterday.

Thinking Westfield might not be right for your portfolio? Are you interested in our #1 dividend-paying stock instead? Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

More reading

Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned in this article.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.