AFTER GOBBLING UP NEARLY TWO DOZEN shopping centers in less than a year, Westfield America, a subsidiary of Westfield America Trust, shows no signs of abating its aggressive acquisition strategy.
The Westfield America portfolio, which included just seven U.S. malls in 1993, now consists of 61 centers totaling 62 million sq. ft. — much of which was acquired within the past year. For the past two years, Westfield America finished in the top 5 of our annual Top Shopping Center Owners survey.
“There are a number of properties that will become available in the next few years that we will be interested in purchasing,” says Peter Lowy, CEO of Westfield America. Lowy declined to name potential targets, but said his firm usually invests in markets that it's already in, or scouts acquisition targets with substantial redevelopment potential.
The Los Angeles-based firm isn't afraid to spend big bucks. For $2.5 billion, Westfield America recently completed the acquisition of 14 shopping centers from the Dutch property owner Rodamco North America. Thewas part of Rodamco's disposition of 35 centers in a joint sale to Westfield, Simon Property Group and The Rouse Co. in May 2002. In addition, Westfield purchased nine centers from Cleveland-based Richard E. Jacobs Group for $756 million in April 2002.
According to James Koury, retail investment specialist and senior vice president at Boston-based real estate services firm Spaulding & Slye, Westfield's acquisition strategy is right on target. “It does not surprise me if they're aggressively pursuing quality shopping centers,” Koury said. “Retail real estate is counter-cyclical to the office market, and the office market is currently down.”
Also central to Westfield America's growth in the United States has been its key redevelopment initiatives. The firm currently is spending about $500 million on the redevelopment of several centers, and plans to increase that amount as it revamps its new acquisitions. Westfield America plans to spend about $1.2 billion upgrading the Rodamco portfolio and about $300 million on the Jacobs portfolio. The firm typically re-invests about 50% of the acquisition cost in the renovation of its properties, Lowy says.
In addition to acquiring properties with redevelopment potential, Westfield America aims to cluster its malls in key markets, all of which are branded under the “Westfield Shoppingtown” name. Westfield America now owns 11 centers in Los Angeles, eight in San Diego, six in St. Louis and four in. According to Lowy, this strategy provides greater branding and leasing opportunities and helps balance the portfolio geographically.
Westfield America also has focused on diversifying its portfolio globally. Its acquisition of the U.S. retail portfolio of Rodamco illustrates the expanding nature of retail property ownership, Lowy says. “It's the truly international nature of mall business. Here is an Australian company (Westfield), doing a transaction in Holland with a Dutch company (Rodamco), which owns malls in the United States.”
Top 25 Shopping Center Owners
The Top Shopping Center Owners ranking was originally published in NREI's sister publication, Shopping Center World. The listing is based on total retail GLA owned through Sept. 30, 2001, as reported by participating companies. In the case of joint ventures, the company provided its percentage of ownership.
Simon Property Group
115 W. Washington St.,
Indianapolis, IN 46204
Web site: shopsimon.com
Total GLA Owned: 185 million sq. ft.
Melvin Simon, Co-Chairman; Herbert Simon, Co-Chairman; David Simon, CEO; Hans Mautner, Vice Chairman; Michael P. McCarty, Sr., Sr. VP, Research & Corporate Communications
General Growth Properties Inc.
110 N. Wacker Dr., Chicago, IL 60606
Web site: generalgrowth.com
Total GLA Owned: 88.5 million sq. ft.
Matthew Bucksbaum, Chairman; John Bucksbaum, CEO; Bob Michaels, President/COO; Jean Schlemmer, Exec. VP of Asset Management; Bernie Freibaum, CFO; Kevin Moss, Chief Information Officer
Kimco Realty Corp.
3333 New Hyde Park Road, New Hyde Park, NY 11042
Web site: kimcorealty.com
Total GLA Owned: 68 million sq. ft.
Milton Cooper, Chairman/CEO; Michael J. Flynn, Vice Chairman/President; David B. Henry, Chief Investment Officer; Jerry Friedman, Exec. VP Development; Joel Yarmak, VP Financial Operations
Westfield Corp. Inc.
11601 Wilshire Blvd. 12th Floor, Los Angeles, CA 90025
Web site: westfieldamerica.com
Total GLA Owned: 64.6 million sq. ft.
Peter S. Lowy, CEO; Richard E. Green, Vice Chariman; Roger D. Burghdorf, Sr. Exec. VP; Gary Karl, Exec. VP Management; John Schrader, COO; Mark A. Stefanek, CFO; Rick Gehringer, Chief Information Officer
CBL & Associates Properties Inc.
2030 Hamilton Place Blvd., Suite 500 Chattanooga, TN 37421
Web site: cblproperties.com
Total GLA Owned: 53.7 million sq. ft.
Charles B. Lebovitz, Chairman/CEO; John N. Foy, Vice Chairman & CFO; Eric Snyder, Sr. VP & Director of Corp. Leasing; Ben S. Landress, Exec. VP; Jerry Sink, Sr. VP - Mall Management
The Macerich Co.
401 Wilshire Blvd., Suite 700, Santa Monica, CA 90401
Web site: macerich.com
Total GLA Owned: 41.9 million sq. ft.
Mace Siegel, Chairman; Arthur Coppola, President/CEO; Tom Unis, Senior VP Leasing; Charles Waldron, Sr. VP Management; David Contis, Exec. VP/COO; Thomas E. O'Hern, Exec. VP/CFO; Bob Altman, Sr. VP/CIO
Urban Retail Properties Co.
900 North Micigan Ave., Chicago, IL 60611
Web site: urbanretail.com
Total GLA Owned: 39.7 million sq. ft.
Gerald Egan, Chairman/CEO; Matthew S. Dominski, President; James H. Lyman, Exec. VP; Ross B. Glickman, President - Leasing; Joseph M. Shrader, President - Management; Lee M. Letchford, COO
Developers Diversified Realty Corp.
3300 Enterprise Parkway, Beachwood, OH 44122
Web site: ddrc.com
Total GLA Owned: 39.3 million sq. ft.
Scott Wolstein, Chairman/CEO; David Jacobstein, President/COO; Daniel Hurwitz, Exec. VP; Richard Brown, Sr. VP of Asset Management & Operations; William Schafer, Sr. VP/CFO
Benderson Development Co. Inc.
570 Delaware Ave., Buffalo, NY 14202
Web site: benderson.com
Total GLA Owned: 39.1 million sq. ft.
Nathan Benderson, CEO; Randall Benderson, President; Rex Burgher, VP of Development; Doug Fischer, VP of Property Management; Alan Wolfson, VP of Finance; Dave Hyzy, Director of Information Technology
New Plan Excel Realty Trust
1120 Avenue of the Americas, New York, NY 10036
Web site: newplanexcel.com
Total GLA Owned: 37.9 million sq. ft.
Glenn Rufrano, CEO/President; Leonard Brumberg, Ex VP Retail; Steven Siegel, Sr VP, General Counsel & Secretary; Steven Kaufman, Senior VP - Leasing; John Roche, CFO
Lend Lease Real Estate Investments Inc.
3424 Peachtree Rd., NE, Suite 800, Atlanta, GA 30326
Web site: lendleaserei.com
Total GLA Owned: 34 million sq. ft.
Fred Pratt, CEO; Doug Healy, Principal, Retail; Bob Barlett, Principal
The Cafaro Co.
2445 Belmont Avenue, P.O. Box 2186 Youngstown, OH 44504
Web site: cafarocompany.com
Total GLA Owned: 33.8 million sq. ft.
The Rouse Co.
10275 Little Patuxent Parkway, Columbia, MD 21044
Web site: therousecompany.com
Total GLA Owned: 31.6 million sq. ft.
Anthony W. Deering, Chairman/CEO; Douglas A. McGregor, Vice Chairman/COO; Robert D. Riedy, Senior VP; Jerome D. Smalley, Exec. VP; Duke Kassolis, Senior VP; Jeffrey H. Donahue, Exec. VP/CFO
Glimcher Realty Trust
20 South Third St., Columbus, OH 43215
Web site: glimcher.com
Total GLA Owned: 29.8 million sq. ft.
Herb Glimcher, Chairman/CEO; Michael P. Glimcher, President & Trustee; P. Martin Yates, Sr. VP, Leasing; John P. Hoeller, Sr. VP, Director of Property Management; William G. Cornely, Exec. VP, COO/CFO
Weingarten Realty Investors
2600 Citadel Plaza Drive, Suite 300, Houston, TX 77008
Total GLA Owned: 26.7 million sq. ft.
Drew Alexander, President & CEO; Stanford Alexander, Chairman; Johnny Hendrix, Sr. VP/Dir. of Leasing; Martin Debrovner, Vice Chairman; Lois Robinson, VP, Property Management; Steve Richler, Sr. VP & CFO; Gene Lax, Dir. of Information Technology
Edens & Avant
1901 Main St., Suite 900, Columbia, SC 29201
Web site: edensandavant.com
Total GLA Owned: 26.5 million sq. ft.
Joe Edens, Chairman/CEO; Jodie W. McLean, Chief Investment Officer; Earl C. Kurtz, VP Retail Leasing; Hal Cottingham, VP Retail Management; Larry Wheeler, VP, Asset Management; Jay Mattera, CFO
121 W. Forsyth Street, Suite 200, Jacksonville, FL 32202
Web site: regencycenters.com
Total GLA Owned: 25.9 million sq. ft.
Martin E. Stein, Jr., Chairman/CEO; Mary Lou Fiala, President/COO; John S. Delatour, Managing Director Operations - West; James D. Thompson, Managing Director Operations - East
Heritage Property Investment Trust, Inc.
535 Boylston St., Boston, MA 02116
Web site: heritagerealty.com
Total GLA Owned: 25 million sq. ft.
Thomas C. Prendergast, CEO/President; Gary Widett, COO; Barry Rodenstein, VP, Leasing; Gary Widett, COO; David Gaw, CFO; Bruce Peters, Information Systems Director; Robert Prendergast, VP, Property Mgmt & Construction
Taubman Centers Inc.
200 East Long Lake Road, Bloomfield Hills, MI 48304
Web site: taubman.com
Total GLA Owned: 22.2 million sq. ft.
Robert S. Taubman, President/CEO; Lisa A. Payne, Exec. VP & CFO; Courtney Lord, Sr. VP & Mg. Director, Leasing; William S. Taubman, Exec. VP; Denise Anton, Sr. VP, Center Operations; Steve Eder, Sr. VP & Treasurer
LaSalle Investment Management Inc.
200 East Randolph Dr., Chicago, IL 60601
Total GLA Owned: 22 million sq. ft.
Lynn C. Thurber, CEO; Kimball C. Woodrow, Managing Director, Investment Services; Amy Erixon, Managing Director, Strategic Initiatives; Stephen A. Smith, Managing Director, Client Services
Garden Commercial Properties
820 Morris Turnpike, Short Hills, NJ 07078
Web site: gardencommercial.com
Total GLA Owned: 20.8 million sq. ft.
Joseph Wilf, President; Mario Dudzinski, VP Real Estate; Leonard Wilf, CEO; Zygmund Wilf, COO; Mark Wilf, CFO
The Pyramid Cos.
4 Clinton Square, Syracuse, NY 13202
Total GLA Owned: 19.5 million sq. ft.
Robert J. Congel, Managing Partner; James Tuozzolo, Senior Partner; Nicholas King, Director of Leasing; Marc Malfitano, Senior Partner
RD Management Corp.
810 Seventh Ave., 28th Floor, New York, NY 10019
Web site: rdmanagement.com
Total GLA Owned: 18.3 million sq. ft.
Walter Samuels, President; Richard Birdoff, Exec. VP; Mary Ann Savarese, VP, Dir. of Leasing; Charles Messi, Dir. of Operations; Isana Radchik, CFO; Al Rossi, VP
11411 N. Tatum Boulevard, Phoenix, AZ 85028
Web site: westcor.com
Total GLA Owned: 18 million sq. ft.
Rusty Lyon, Chairman; Robert Ward, President/CEO; Gilbert Chester, Exec. VP; Jack Rasor, Exec. VP; Robert Williams, Exec. VP; Fred Collings, Senior VP
The Mills Corp.
1300 Wilson Blvd. #400, Arlington, VA 22209
Web site: millscorp.com
Total GLA Owned: 17 million sq. ft.
Laurence Siegel, Chairman/CEO; Judith Berson, Exec. VP, Leasing; Kent Digby, Exec. VP, Management & Marketing; Ken Parent, Exec. VP/CFO