It has been confirmed that global retail giant Westfield Group (ASX: WDC) is in negotiations to sell its interests in its Derby and Merry Hills malls in Britain to Intu Properties (formerly Liberty International), they could be worth over $1 billion combined.
The move would make sense, given that the company has been selling its stakes in smaller, less profitable malls to focus on its core assets to strengthen its balance sheet and increase the business' long-term stability. Take, for example, its redevelopment projects at centres such as Croydon in south London as well as its World Trade Centre store located at Ground Zero in New York.
Westfield currently maintains a 66.7% stake in Derby which was valued at £270.3 million in 2011, while also boasting a 33.3% stake in Merry Hill which was worth £259 million in its 2011 accounts.
Foolish takeaway
Shares in both Westfield Group and Westfield Retail Trust (ASX: WRT) look attractive at today's prices. Both companies could benefit in the future should the Westfield management's proposal to split its domestic and international businesses get the required approval from shareholders, although the deal may need to be sweetened to see that happen.
