Fox Valley, Hawthorn malls among those sold by Westfield

Westfield Corp. has sold five shopping malls nationwide - including Fox Valley and Hawthorn malls - for a total of $1.1 billion to help fund a property development program.

The malls also include others in Connecticut, California and Washington.

The sale of the five shopping malls to a joint venture comprising Centennial Real Estate Co., Montgomery Street Partners and USAA Real Estate settled Dec. 18, Westfield said.

The sale along with another transaction in November would give Westfield about $1 billion in net proceeds, and reduce gearing - its debt as a percentage of equity capital - by 3 percent, the Australian owner of malls in U.S. and U.K. said in a statement in Sydney Monday. It will also dilute funds from operations by 3.5 cents a security, the company said.

Westfield will continue to hold a 20 percent interest in the five assets. The proceeds will also be used to fund the $11.4 billion development program that is estimated to yield 7 percent to 8 percent, Westfield said.

"Our strategic focus is to create and operate flagship assets in leading markets and divest noncore assets," Co-Chief Executive Peter Lowy said in the statement. "Today's announcement marks a significant milestone in our divestment strategy."