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European real estate giant, Unibail-Rodamco-Westfield (URW), is rethinking its strategy for its US shopping centers. The company plans to retain a significant portion of its portfolio in the United States, including potentially two major malls in San Jose's South Bay area. This shift comes after URW successfully sold off several underperforming properties and reduced its debt.

    During a recent conference call, CEO Jean-Marie Tritant announced that the company will focus on retaining its top-performing US assets, which are expected to drive growth and value creation. However, it remains unclear what specific criteria define these "high-performing" malls. URW has previously referred to Westfield Valley Fair as one of its flagship shopping centers in the United States.

    URW had been actively negotiating the sale of Westfield Oakridge in south San Jose but extended the exclusivity period for the sale in July 2024, receiving a $30 million non-refundable deposit. The company did not provide an update on the status or potential timeline for the sale during its latest conference call.

    URW's US portfolio includes 11 flagship shopping centers, with Valley Fair being the only one in the Bay Area. The company has also unloaded a struggling mall in San Francisco through foreclosure. URW's Chief Financial Officer, Fabrice Mouchel, noted that vacancy levels at the company's flagship malls have improved significantly, standing at 6.2% as of 2024.

    While URW plans to retain its top-performing assets, it may still consider selling other US shopping centers in the future. The company aims to continue streamlining its portfolio and activities, with a potential review of additional disposals starting in 2026.