Westfield Malls will be purchased by Intu for $1.4 billion.

 

Intu Properties Plc, the UK's largest shopping mall operator, has paid £867.8 million ($1.4 billion) to Westfield Group for three shopping malls. qatar seal

According to a corporate statement, the retailer will purchase the 230,000-square-foot Sprucefield retail park in Northern Ireland, the 1.3 million-square-foot Westfield Derby, and a 50% stake in the 1.4 million-square-foot Westfield Merry Hill shopping center located 10 miles from Birmingham.

Intu, based in London, will fund the deal with £423.8 million in new loan facilities and £500 million in proceeds from a share sale.

Intu chief executive David Fischel said in a statement that the transaction "is a rare and lucrative opportunity to acquire two additional prime shopping centers in line with our plan to concentrate on the United Kingdom's largest and most profitable destinations."

Investors are becoming more interested in commercial real estate in the United Kingdom. According to data from Investment Property Databank Ltd, commercial property prices increased for the tenth month in a row in February.

Westfield will earn £600 million from the deal, which is in line with the book value, according to a statement released by the company.

Intu bought Parque Principado Shopping Centre in northern Spain for €162 million ($219.7 million) in October through a joint venture with Canada Pension Plan Investment Board.

 

Dalata, a company based in Ireland, has raised €265 million in its initial public offering.

Dalata, an Irish hotel operator, has raised €265 million ($369 million) in an initial public offering, exceeding its goal.

The company's shares were listed in Dublin and London, making it the most recent real estate IPO in the country's improving market.

According to a company release, Dalata's initial goal was €150 million to €200 million. The proceeds from the initial public offerings will be used to pay off €4.1 million in debt and to purchase a portfolio of 16 to 25 hotels across Ireland.

In a quote, Dalata CEO Pat McCann said, "We are pleased to accept quality foreign institutions as shareholders on admission and believe that this represents the strength of our investment case and prospects."

Dalata began operations in 2007 and now has 40 hotels with over 6,100 seats.

The Irish property market, which was hit particularly hard by the global financial crisis, is slowly improving, with increased investor interest in commercial property.

For the first time in six years, commercial property prices in Ireland increased in October.

Dalata's new IPO comes after Green REIT and Hibernia REIT, Ireland's first and second real estate investment trusts, respectively, went public last year.

According to Reuters, IPO activity in Europe has more than tripled year over year to $12 billion so far this year.