Unibail-Rodamco acquired its competitor Westfield for 14 billion euro and will gain control over 35 shopping center (33 in the United States). The resulting company will become the world’s largest real estate company.
1.2 billion visitors
Unibail-Rodamco is already present in eleven European countries with 69 shopping centers worth 42.5 billion euro. The acquisition should bring in more prestigious shopping centers and give it a solid base in the United States, FD writes.
The new company will have more than one hundred shopping centers that welcome 1.2 billion visitors every year. There are also new projects incoming, worth more than 12 billion euro: the group wants to open new shopping centers in Brussels, Hamburg, London, Lyon, Milan, Paris and San Jose among other places.
Unibail-Rodamco forecast an 8 % cost reduction thanks to the acquisition, which would result in 100 million euro every year. Current Unibail-Rodamco CEO, Christophe Cuvillier, will lead the new merger company. CFO Jaap Tonckens will also maintain his position, but both will now be flanked by two Westfield managers. Colin Dyer will become chairman of the board for instance.