By Sonali Paul
MELBOURNE (Reuters) - Westfield Group (WDC.AX: Quote, Profile, Research), the world’s top shopping mall owner, and Singapore’s GIC Real Estate declined to comment on Thursday on media reports that one of them was in talks to buy British shopping centre group Liberty International (LII.L: Quote, Profile, Research).
Liberty International shares rose 9.2 percent to 1,030 pence, giving it a market value of 3.7 billion pounds ($7.4 billion), after London’s Independent newspaper on Wednesday reported talks that could lead to it teaming up with a large rival.
The report cited an unidentified source close to the talks as saying the interested party was an international company bigger than Liberty.
Spokeswomen for both Westfield and GIC Real Estate, the property investment arm of the Government of Singapore Investment Corp, declined to comment.
Analysts and fund managers played down the likelihood of Westfield making a bid for Liberty at a time when UK property prices are falling.
“The reality is, they could wait and get it cheaper,” said Justin Blaess, director of property securities at ING Investment Management.
He said Westfield had been applauded by the market for its conservatism, in contrast to other debt-burdened property groups, and increasing its exposure to the UK market while property values were falling would not fit the bill.
GIC Real Estate owns 4.2 percent of Liberty, according to Reuters data. Continued…
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