HONOLULU — Brookfield Properties has finalized a €2.2 billion refinancing package for the iconic Ala Moana Center in Honolulu, reaffirming its long-term investment in one of the world’s premier open-air shopping destinations. The transaction underscores both the mall’s resilience and Brookfield’s strategy to enhance the value of high-performing retail assets.
Ala Moana: A Global Retail Landmark
Opened in 1959, Ala Moana Center spans over 2.4 million square feet and hosts more than 350 retailers, from global luxury names like Chanel, Dior, and Louis Vuitton to local boutiques and culinary venues. Located near Waikiki, the mall attracts millions of visitors annually, blending shopping with cultural performances and open-air architecture. Annual foot traffic exceeds 52 million visits, positioning it among the top-performing retail properties in the United States by sales per square foot.
Refinancing to Fuel Strategic Growth
The €2.2 billion refinancing deal, structured with several institutional lenders, will be used to pay down existing debt and fund future enhancements. While Brookfield has not disclosed specific interest terms, industry sources suggest the move will enable more competitive financing conditions, improve cash flow, and support capital projects at the site.
The funds are expected to go toward:
- Tenant renovations and upgrades
- Infrastructure modernization
- Sustainability and energy-efficiency initiatives
- Expansion of community event spaces and green areas
Economic and Market Impact
Ala Moana Center is a vital economic engine in Honolulu, providing over 10,000 jobs and contributing significantly to city and state tax revenues. The refinancing is seen as a vote of confidence in the Hawaiian retail market, which continues to attract global brands and investors despite broader retail challenges.
Experts say the capital injection could support construction contracts, create new leasing opportunities, and stimulate tourism-driven spending. Real estate analysts also anticipate increased valuation for the property, which is currently estimated to be worth more than €4.1 billion.
Brookfield’s Retail Strategy
Brookfield Properties, one of the world’s largest real estate managers, is focusing on core assets with strong long-term growth potential. The refinancing of Ala Moana aligns with its strategy to modernize premium retail properties through financial agility, sustainability, and customer-centric enhancements.
This deal follows Brookfield’s similar refinancings across its U.S. portfolio, including notable transactions in New York and Los Angeles, signaling ongoing confidence in destination retail centers. Brookfield has invested more than €10 billion into U.S. retail properties since 2020, emphasizing its strategy of doubling down on top-tier assets.
Outlook
With this refinancing in place, Ala Moana Center is well-positioned to remain a top-tier shopping and lifestyle hub in the Asia-Pacific region. Brookfield’s investment signals a commitment not only to the property’s profitability, but also to its cultural and economic role in Honolulu’s future. Planned upgrades and sustainability improvements will help ensure the center continues to thrive in a changing retail environment.
