The Westfield Group has agreed to sell its 75% interest in the Broadmarsh shopping centre in Nottingham to Capital Shopping Centres for £55m.
Westfield’s interest is being sold to the UK shopping centre REIT at a premium to book value and is subject to pre-emptive rights held by Possfund, Westfield’s 25% joint venture partner in Broadmarsh.
Broadmarsh was Westfield’s first acquisition in the UK in 2000 and while the group always intended to redevelop the centre, this sale reflects an increased emphasis by the group towards investment in larger, iconic centres such as Westfield London and Stratford City.
Westfield co-chief executive officer, Steven Lowy, said the deal is “a further step in that direction as we re-direct capital and our management capacity to larger-scale development opportunities that we believe will generate better long-term returns for the group”.
Westfield has also announced that it has entered into exclusive arrangements with the Whitgift Foundation to explore the potential redevelopment of a major retail centre at Croydon in south London.
Westfield and the Whitgift Foundation, the freehold owner of the Whitgift shopping centre, will work together to examine opportunities arising from the retail-led regeneration of the Croydon town centre with the same approach adopted in the development of Westfield London and Stratford City.
Croydon is a strategic location in south London close to Gatwick Airport and serves the affluent trade areas of Surrey and Kent as well as parts of Hampshire, East Sussex and West Sussex.
The redevelopment of Croydon is subject to planning consent and concluding agreements with key stakeholders. The Whitgift Foundation has agreed to work exclusively with Westfield with a view to satisfying these requirements.
james.buckley@estatesgazette.com
