Westfield’s international developments on track
Westfield Corporation has started $1.6 billion of the $2.5 billion of development projects it has planned for 2015, including expansion or redevelopment of centres in Silicon Valley, Los Angeles, and San Diego.
The company, which is focused on shopping malls in the United States, UK, and Europe, reported funds from operations for the six months to June 30 of $380.3 million, in line with its forecast.
The firm reported a half year net profit of $465.9 million for its first first-half since its major restructure.
Westfield also reconfirmed its full year distribution guidance of 25.1 cents per security.
Westfield Corporation Co-CEOs, Peter Lowy and Steven Lowy AM, said in a statement the portfolio remains strong.
“The benefits of our restructure last year can be seen in the significant progress being made on our $11.4 billion development program. This year we expect to commence $2.5 billion of projects, having already commenced $1.6 billion of redevelopments to-date in 2015 including Century City in Los Angeles and UTC in San Diego, with the expansion at Westfield London expected to commence later this year.”
The group’s $11.4 billion development program comprises $3.8 billion of projects currently under construction and $7.6 billion of future projects.
“Our strategy is to create and operate flagship assets in leading markets that deliver great experiences for retailers and consumers. We are focused on innovation and are creating a digital platform to converge with our physical portfolio in order to connect retailers and consumers both physically and digitally,” the Co-CEOs said.
The $1.4 billion Westfield World Trade Center is now fully leased and committed. The shopping, dining, event and entertainment destination integrated into the World Trade Center Transportation Hub in Lower Manhattan is expected to open in the first half of 2016.
The $250m development of The Village at Topanga in Los Angeles is now over 95 per cent leased and will open in September 2015.
The Century City redevelopment in Los Angeles will comprise new flagship stores for Nordstrom and Macy’s, a refurbished Bloomingdale’s, 230 premium specialty retail shops and world-class restaurants. The project is expected to open in stages through the end of 2017.
Westfield will commence a £600 million extension of Westfield London in the second half of 2015, which will be anchored by a new flagship John Lewis department store and on completion will become the largest shopping centre in Europe.