- URW originally planned to exit the US market by 2023 but has now reversed course, opting to keep its 11 flagship malls.
- The company has sold or offloaded 17 properties, generating $3.3B and lowering flagship mall vacancy rates by 6.3%.
- While retaining its top assets, URW still plans to sell non-core properties and reduce debt. Further growth plans are expected in May.
After previously announcing plans to sell its $13.2B US mall portfolio, Unibail-Rodamco-Westfield (UNBLF) has decided to retain its high-performing flagship properties, citing future growth potential, per Bisnow.
Strategic Shift
In 2022, Unibail-Rodamco-Westfield (URW) announced plans to sell its entire US mall portfolio due to financial struggles, investor pressure, and the pandemic’s impact on retail.
However, it went silent on its divestment plans, and in its Q4 earnings report, the company confirmed it would be keeping its highest-performing US malls after all.
“We have made the strategic decision to retain our high-performing flagship assets in the U.S., which will deliver further growth and value creation,” said URW CEO Jean-Marie Tritant.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
On Second Thought…
URW has spent the past four years reshaping its portfolio, disposing of $6.6B in properties across Europe and the US. In the US alone, it sold 17 malls, generating $3.3B while lowering its flagship mall vacancy rate by 6.3%.
Signs that URW might rethink its US exit first emerged in March 2024, when 16 of its remaining malls started regaining value amid a recovering retail market.
In October 2024, URW extended a $350M loan on Westfield Montgomery Mall in Bethesda, Maryland, indicating a commitment to its US assets. The company later bought out its partner’s 50% equity stake in the 1.3 MSF property, consolidating ownership as it plans a redevelopment.
Looking Ahead
URW still plans to sell non-core assets while retaining and investing in its flagship malls. The company is expected to announce further growth and redevelopment plans in May, signaling a long-term commitment to the US retail market.
