Westfield mulls third mega mall for London

Westfield Group is considering the development of a third major retail scheme in London. The Sydney-listed shopping centre developer-owner has entered into an exclusive arrangement with Whitgift Foundation to explore the potential redevelopment of a retail centre in Croydon, south London.

The move is part of the company's strategy to focus on large-scale shopping centre developments rather than smaller malls. Westfield has already developed two huge retail-led schemes in the west and east of the UK capital: Westfield London (150,000 m2) and the Westfield Stratford City (175,000 m2), adjacent to the 2012 Olympic Stadium.

The Australian company said it will work with Whitgift Foundation, freehold owner of Whitgift Shopping Centre, to examine the potential for retail-led regeneration of Croydon town centre using the same approach it adopted for Westfield London and Stratford City.

Croydon is south London close to Gatwick Airport and serves the affluent trading areas of Surrey and Kent. Westfield believes a new scheme has the potential to serve three million customers in south London and the south east of England. The redevelopment is subject to planning consent and agreements with key stakeholders.

Westfield Co-CEO Steven Lowy said Croydon could provide the group with a significant presence in the south of the UK capital, augmenting its existing centres in the west and east of London.

Westfield has also brought its mega-mall concept to Continental Europe. During the summer Westfield took a 50% stake in a EUR 1 bn development in Milan, host of the World Expo in 2015.

Reflecting the focus on the development of larger centres Westfield announced on Thursday that it has agreed to sell its 75% stake in the 45,000 m² Broadmarsh shopping centre in Nottingham to London listed investor Capital Shopping Centres.

Click on the link below to read more about the Broadmarsh deal