Westfield Group successfully opens 5 major developments across 4 countries
06 November 2007
Today the Westfield Group (ASX: WDC) announced its 3rd Quarter 2007 Update. A significant highlight for the Group has been the successful opening of 5 major development projects with an aggregate cost of $1.5 billion across four countries in four weeks.
The Westfield Group has successfully completed and opened:
- In the United Kingdom: the 340 million redevelopment of Derby in the East Midlands, on 9 October at a yield of 8.5%;
- In Australia: the $170 million redevelopment of Kotara, in Newcastle on 18 October and the $190 million expansion at North Lakes in Brisbane on 25 October at yields of 9.1% and 9.5% respectively;
- In the United States: the US$160 million redevelopment of Annapolis in Maryland on 1 November at a yield of 10.0%; and
- In New Zealand: the NZ$210 million development of a new centre at Albany on Aucklands North Shore, which also opened on 1 November at a yield of 11.2%.
Westfield Group Managing Director, Steven Lowy, said The delivery of these major projects highlights the global capabilities of the Group and reflects the expertise and depth of the Groups team with the unprecedented delivery of five major projects across four countries in a four week period.
Each project has delivered a strong yield and created significant long term value for the Group.
These projects completed at an aggregate cost of $1.5 billion (Westfield Group investment $1.0 billion) have delivered strong investment returns, achieving a weighted average income yield of 9.4% thereby being accretive to the Groups operational and development earnings.
The redevelopment of Westfield Derby is the Groups first development in the United Kingdom and has been delivered six months ahead of the original schedule and in line with forecast.
The successful delivery of our first UK project at Derby is particularly significant for the Group, confirming our ability to transfer development expertise to a new market, Mr. Lowy said.
The Groups global development program continues to enhance the value and market penetration of the existing portfolio. The Group currently has $5.6 billion of development projects underway and in excess of $10 billion of new development projects expected to commence over the next 3 years.
FACT SHEET RECENTLY COMPLETED DEVELOPMENTS
Westfield Derby, East Midlands, United Kingdom:
Development cost: 340 million
Development yield: 8.5%
Development opened: 9 October 2007
Area: 105,000 sqm
Number of retail stores: 150 specialty stores
New retailers to the region: 100
Anchors: Marks and Spencer and Debenhams department stores and Sainsbury supermarket, Cinema de Lux (opens Easter 2008)
Westfield Kotara, Newcastle, New South Wales, Australia:
Development cost: $170 million
Development yield: 9.1%
Development opened: 18 October 2007
Area: 63,500 sqm
Number of retail stores: 230 specialty stores
New retailers to the region: 70
Anchors: David Jones department store, Kmart and Target discount department stores, and Coles and Woolworths supermarkets
Westfield North Lakes, Brisbane, Queensland, Australia:
Acquired: Originally greenfield development, opened 2003
Development cost: $190 million
Development yield: 9.5%
Development opened: 25 October 2007
Area: 58,000 sqm
Number of retail stores: 200 specialty stores
Anchors: Myer department store (opens 2nd Quarter 2008), Target and Big W discount department stores, and Coles and Woolworths supermarkets
Westfield Annapolis, Annapolis, Maryland, United States:
Development cost: US$160 million
Development yield: 10.0%
Development opened: 1 November 2007
Area: 136,500 sqm
Number of retail stores: 245 specialty stores
Anchors: Nordstrom, Lord & Taylor, Macys, JC Penney and Sears department stores, Bow Tie Theatre
Westfield Albany, Auckland, New Zealand:
Acquired: Greenfield development
Development cost: NZ$210 million
Development yield: 11.2%
Development opened: 1 November 2007
Area: 50,000 sqm
Number of retail stores: 140 specialty stores
Anchors: Farmers department store, Kmart discount department store, and New World supermarket, SkyCity Cinema (opens Easter 2008)
The Westfield Group (ASX Code: WDC) is an internally managed, vertically integrated, shopping centre group undertaking ownership, development, design, construction, funds/asset management, property management, leasing and marketing activities and employing in excess of 4,000 staff worldwide. It has investment interests in 120 shopping centres in four countries, with a total value in excess of $60 billion and is the largest retail property group in the world by equity market capitalisation.