Hammerson and Westfield have settled their long running argument and teamed up to bring forward a £1bn regeneration of south London town Croydon.
As part of the jv, Westfield has bought a 50% interest in the £115mn Centrale shopping centre from Hammerson.
The jv will also buy a 25% stake in the Whitgift Centre, following completion of Hammerson’s conditional acquisition agreement with Royal London.
Together the duo will redevelop and combine the two main Croydon shopping centres – the Whitgift Centre and Centrale.
A mixed-use scheme of around 2m sq ft will include shops, leisure, residential with the potential for hotels and offices.
Hammerson and Westfield will meet with all stakeholders over the coming weeks to discuss their plans for Croydon, following which a revised masterplan will be created combining the best elements of both schemes.
Consent for the scheme is hoped to be achieved this year, with work on site beginning in 2015.
Westfield and Hammerson have set up a joint management company which has responsibility for development, leasing and asset management of the completed scheme.
Westfield will undertake the design and construction of the project, while Hammerson will be asset manager.
London mayor Boris Johnson said: “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.
“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.”
Hammerson chief executive David Atkins added: “We have shown our commitment to Croydon through our existing investments in the town centre and I believe that by working together we can deliver a world class scheme for retailers and residents. Both we and Westfield remain excited and convinced by the opportunity in Croydon, which we can now progress with clarity.”
Frank Lowy, Westfield chairman, said that the £1bn jv development would provide certainty for Croydon residents.
Deloitte Real Estate is advising Croydon council.
Listen here for interviews with London Mayor Boris Johnson, Hammerson and Westfield and Croydon council leader Mike Fisher. All podcasts can be downloaded from Estates Gazette’s iTunes channel.
samantha.mcclary@estatesgazette.com
