Unibail-Rodamco-Westfield (URW) is moving to acquire full ownership of the Westfield UTC shopping center in San Diego, buying out its joint venture partner’s remaining stake in the property. The French retail real estate company disclosed that the planned transaction values the acquisition at $705 million and would consolidate control of the open-air retail destination under a single owner.
According to URW, the deal involves purchasing the remaining 50% interest in the Westfield UTC center. The property totals approximately 1.2 million square feet and operates as an open-air shopping complex. While the transaction would give URW full ownership of the shopping center itself, certain land parcels associated with the site will be excluded and will remain under joint venture ownership.
URW stated that the $705 million acquisition will be funded through a combination of cash and the issuance of up to 2.6 million new shares by the company. The final structure is expected to depend in part on URW’s share price at the time of closing, reflecting a blend of balance-sheet cash and equity capital to complete the purchase. The closing of the acquisition remains subject to customary conditions, indicating that the transaction is not yet finalized.
The company described Westfield UTC as one of the best retail assets in the United States and emphasized its strategic fit within URW’s existing global portfolio. The center is positioned as a flagship property within URW’s collection of major retail destinations in key urban markets across Europe and the U.S. By moving from partial to full ownership, URW aims to align the asset more closely with its broader corporate and portfolio strategy.
URW also linked the planned acquisition to its “A Platform for Growth” business plan for the 2025-2028 period. In its statement, the company said the Westfield UTC transaction is consistent with that plan and with the targeted return profile the firm has set for its investments. The ownership consolidation at Westfield UTC is therefore being framed as part of a longer-term capital allocation and portfolio positioning effort, rather than a one-off transaction.
The exclusion of certain land parcels from the deal underscores that not all of the real estate associated with the broader site will transfer in this transaction. Those parcels will continue to be owned by the existing joint venture, while the primary shopping center asset transitions toward full ownership by URW. Specific details on which parcels are excluded, the identity of the joint venture partner, and the anticipated closing timeline were not disclosed in the announcement.
URW’s decision to finance the acquisition through a mix of cash and newly issued shares highlights the company’s willingness to use both its balance sheet and its access to equity markets to secure control of what it characterizes as a flagship U.S. retail asset. The company is positioning the move as a way to further concentrate its portfolio in what it views as highly attractive urban retail markets.
