Croydon is set to finally get the retail facelift it has been chasing for more than a decade after Westfield and Hammerson this week buried the hatchet over the Whitgift Centre.
On Thursday, the pair ended an 18-month tussle for control of the south London town’s retail centre with the establishment of a joint venture.
Together, the pair will bring forward a 2m sq ft mixed-use regeneration of the town centre, instead of battling for two separate proposals (pictured above).
The deal sees Westfield buy a 50% stake in Hammerson’s £115m Centrale shopping centre and the pair take a 25% stake in the adjacent Whitgift Centre.
Agents said that the partnership could finally secure Croydon’s long-running desire to attract department store chain John Lewis to the town.
John Lewis has flirted with Croydon for several years and was being courted to anchor the stalled Park Place development. However, the retailer refused to go to the scheme unless it could be an anchor between it and the Whitgift Centre, an option that may now be possible.
“The joining of those two parties will no doubt be a catalyst for the delivery of a John Lewis department store,” said one agent. “There is far more of a chance of securing JLP now. It is a very exciting development that John Lewis will undoubtedly anchor.”
Retailers including Next, Debenhams and JD Sports all welcomed the jv, saying they hoped it would mean redevelopment would now move ahead.
JD property director Nigel Keen said: “What you don’t want is two separate landlords fighting. Centrale has never really worked particularly well and the Whitgift is a bit tired, so its now all about how well Hammerson and Westfield work together.”
London mayor Boris Johnson, who officiated at the announcement, said he was “overjoyed to hear that two illustrious retail and regeneration giants” were going to be working together to transform Croydon into an “economic powerhouse”.
He added that City Hall would use its CPO powers to enable the project to move ahead as quickly as possible.
Hammerson chief investment officer Peter Cole said: “Over the last 18 months that we have been competing against each other we actually realised we are very similar companies, with mutual ambitions, we like the people; we get on with each other very well, so let’s get together and work together.”
Westfield chairman Frank Lowy admitted that the Australian developer would have preferred to have developed Croydon itself, but added: “We are very ambitious to make this place the best in London. But we have got to do the bloody job and make some money on the way.”
Team Westham
• Plans for the 2m sq ft scheme will be submitted this year, with the aim to start on site in 2015 and complete in 2018
• Westfield will lead on design and construction
• Hammerson will lead on asset management
• A “brand-neutral” name will be selected for the scheme
• Deloitte Real Estate advised Croydon council; Savills advised Westfield; CBRE advised Hammerson.
