As part of the transaction, a Prudential U.S. affiliate would in turn acquire an interest of up to 50% in Westfield America's Garden State Plaza in New Jersey. The closing of the transactions is subject to a number of conditions.

Westfield's managing director, Peter Lowy, said the transaction will increase Westfield's U.S. portfolio to 62 centers, and increase to 12 the number of centers in which it holds interests in the Los Angeles market, where Sherman Oaks Fashion Square is one of the largest centers in the San Fernando Valley. He said the sale of Westfield's interest in Garden State Plaza to Prudential, when completed, will provide additional cash for further U.S. expansion by Westfield, which maintains its U.S. headquarters in West Los Angeles.

Prudential's Nick Thompson, head of fund management for the company's real estate group in London, said the deal will provide geographic diversification for Prudential in the United States and will bring Westfield's leasing and property management expertise to Fashion Square.