Westfield reaffirms commitment to dormant Bradford scheme

Shopping centre specialist Westfield has reaffirmed its commitment to complete a long-delayed scheme in the UK city of Bradford following a news report that the development is on the verge of being sold.

Property Week reported on Thursday that European retail property investor Meyer Bergman may agree to a forward-purchase of the mid-sized Broadway shopping centre development in Bradford by next week.

The suggested price tag of £200 mln (EUR 246 mln), would reflect a yield of just over 7% for the 51,000 m² city centre scheme. Completion of the centre, Property Week said, could be in late 2014 or early 2015.

Westfield said in a statement that it was not prepared to comment on speculation. Meyer Bergman declined to comment.

Sydney-listed Westfield - which focuses on developing mega centres such as Westfield Stratford City and Westfield London - went on to say, 'Westfield is committed to progressing The Broadway scheme in Bradford and is focused on the pre-letting of the scheme before it can commence on site.'

Westfield noted that Debenhams has signed an agreement to extend its proposed store in the Broadway development. This follows anchor store lettings with Marks & Spencer and Next. ‘There is strong interest from a range of major stores and specialty shops given the relatively untapped retail market in Bradford City Centre,' the company said.

Westfield acquired the site in 2004 as part of a portfolio deal when it entered the UK. Work began in Bradford in 2007 but was suspended the following year when the property markets were derailed by the global financial crisis.

Fund manager Meyer Bergman owns three malls in the UK through its first shopping centre fund: the Bentall Centre in Kingston and the Burlington Arcade and The Exchange in London. The fund also owns Forum Nova Karolina and Forum Usti nad Labem in the Czech Republic; Galeria Katowicka in the Polish city of Katowice and Aladdin Shopping Centre in Ukraine.

Meyer Bergman's second fund carried out its first transaction in September this year when it acquired a high-street retail property in central Copenhagen.