Westfield hit by weak sales, values

SYDNEY - The world's biggest listed shopping centre owner Westfield Group is seeking to raise A$2.9 billion ($3.7 billion) through a securities placement as it faces weaker asset values and falling sales.

The Sydney-based company has also revised down the earnings forecast for the 2008 calendar year it offered just seven days ago.

Westfield said yesterday it will issue 276 million new securities at A$10.50 each, as it aims to strengthen its stapled balance sheet through reducing debt and position for potential acquisitions.

Westfield securities last traded at A$12.10 before being placed in a trading halt pending the completion of the institutional placement.

The group said the capital raising would reduce its gearing by 4 per cent to approximately 36 per cent.

It added that operational segment earnings per security for calendar 2009 are expected to be between A94c to A97c. Last week these were forecast to be between A97c and A$1.00.

Its latest figures show further deterioration in Westfield's US and UK operations, where the majority of its revenue is derived.

Westfield also flagged a A$3 billion write- down in the value of it's global assets when it issues its results on February 26.

- AAP