Unibail-Rodamco-Westfield (URW) has repaid a USD 350 million loan associated with the Westfield Montgomery Shopping Mall in Bethesda, Maryland. This comes more than two years after the liability was transferred to a 'special servicing' status.
The repayment of the loan for the 1.2 million square foot mall followed a two-year extension of its original term. According to Bisnow, the loan was set to expire on 1 August. Morningstar Credit described the repayment as a 'rarity in a cycle' where many shopping mall loans continue to receive extensions.
Background and Adjustment of URW's Strategy
URW had taken out the ten-year loan in 2014, with the liability tied to 836,000 square feet of the property. The shopping centre received a two-year extension after the original maturity date in August 2024 could not be met. The French shopping mall giant URW received approval in 2020 to redevelop Westfield Montgomery, but this project has not yet commenced.
The full repayment of the loan comes at a time when URW has adjusted its broader US strategic course. In 2022, the company announced its intention to sell its USD 13.2 billion American portfolio. However, last year URW instead decided to retain eleven high-performing flagship malls and continue to divest non-core properties.
Developments at Westfield Montgomery
Meanwhile, Westfield Montgomery has continued to attract new retailers and restaurants. The mall announced in July that new additions for 2026 would include Pop Mart and Wetzel's Pretzels, among others.
