Australian retail giant
Westfield has continued their global expansion plans by announcing plans to enter into a £1B joint venture to redevelop the retail centre of Croydon in south London.
As part of the joint venture, Westfield has acquired a 50% interest in the £115 million Centrale shopping centre from Hammerson.
The joint venture will also purchase a 25% interest in the Whitgift Centre, following completion of Hammerson's conditional acquisition agreement with Royal London.
According to a press release issued by the company late last week, the intention is to redevelop and combine the two main Croydon shopping centres, the Whitgift Centre and Centrale, to deliver a comprehensive and transformation change to Croydon.
The mixed-use scheme is proposed to include over 200,000 square metres of retail, leisure and residential uses with the potential for hotels and offices. The proposal will create over 5,000 new jobs.
The investment comes at a time when retail expenditure has continued to perform poorly in the wake of weakening economic conditions throughout the UK.
It is anticipated that planning consent could be secured in 2013, with construction expected to start on site in 2015.
Under the joint venture, Westfield to undertake the design and construction of the project while Hammerson will continue to asset manage Centrale and any further acquisitions prior to the development of the Whitgift Centre. A Westfield Executive will lead the project development team and it is intended that a Hammerson Executive will lead the asset management of the completed centre.
"Croydon has huge potential to return to its former glory as one of London's most vibrant town centres, and a major driver of its economy. The redevelopment of the Whitgift Centre at its heart is crucial to this vision," said Mayor of London Boris Johnson.
"Westfield and Hammerson's innovative developments have breathed new life into long neglected corners of cities across the country, creating thousands of jobs and delivering growth that will soon be repeated in south London.
"It is great news that these two international developers are coming together to drive forward this vital regeneration and put Croydon at the heart of London's future prosperity, building confidence for investors and local people in one of the capital's most important town centres," said Johnson.
"The £1billion redevelopment joint venture with Hammerson will provide certainty for the residents, local businesses and retailers of Croydon and the region. The delivery of a major retail regeneration scheme will re-establish Croydon as South London's premier shopping district and will be a catalyst to further investment and development in the Croydon borough," said Frank Lowy AC, Chairman of Westfield.
