Westwood Spins Two Thirds of its Holdings into New Streamlined Entity
- Sep 15, 2016
By Alex Girda
Los Angeles—Shopping center owner Westwood Financial Corp. recently completed an extensive restructuring of its holdings. The company is shaking up the ownership of 77 of its 120 retail assets into a $1.2 billion retail real estate company. The properties have been bundled with Westwood’s management company to form a separate entity.
Set to operate as Westwood Financial, the new entity is poised to have easier access to capital, and will benefit from significantly streamlined operations. According to Westwood Financial Corp. Co-CEO Joe Dykstra, the company was able “to close 77 transactions on the same day to create this new structure.” The new entity will own and operate assets worth roughly $1.2 billion, while also providing third party asset management, as well as related services for $200 million in properties owned by the co-founders.
“More than 500 investors had to agree to implement this innovative plan,” Westwood Co-Ceo Randy Banchik noted. He also explained that the creation of the new company is due to the evolution of the retail industry, as well as fluid market conditions.
The properties that make up the new entity’s holdings are located across 25 states. The portfolio mostly consists of institutional-quality daily needs retail centers.
Image courtesy of Westwood Financial