URW secures new financing for Westfield Century City in LA

Property giant Unibail-Rodamco-Westfield (URW) has secured 925 million dollars in fresh funding for Westfield Century City in Los Angeles.

The new financing is a two-year floating rate Commercial Mortgage-Backed Securities (CMBS) with the option for three one-year extensions with a spread of 280.7bps over Secured Overnight Financing Rate (SOFR).

Westfield Century City is a 1.4 million square foot flagship shopping centre that has “demonstrated strong operational performance” and is 95.4 percent leased, URW said.

URW finance chief Fabrice Mouchel said in a statement: “This new financing for Westfield Century City increases optionality for URW with respect to the asset, and reinforces the group's liquidity.

“As stated in our H1 2023 results, the radical reduction of URW’s US financial exposure remains the path forward.

“The strong business performance across all markets, our low cost of debt, our ample liquidity position, our tight capital expense control and our net debt-to-EBITDA ratio all provide us with flexibility on the timing of this process.”