Westfield is to boost its retail offer and build homes at its Stratford shopping centre.
The firm plans to start construction on 120,000 sq ft of retail and 1,224 build-to-rent homes before the end of the year at the centre, having recently completed the first phase of a 740,000 sq ft retail extension at Westfield London in Shepherd’s Bush.
The Australian retail giant, soon to be taken over by French firm Unibail-Rodamco, last night received reserved matters consent from the London Legacy Development Corporation for the build-to-rent homes in Stratford, as well as permission to increase the height of the development to 38 storeys.
Westfield gained detailed consent for the retail extension in December 2016.
It then received consent for an additional 150,000 sq ft of retail space three months later, when it gained permission for excavating part of the car park under the existing shopping centre to build more shops.
Building on success
John Burton, head of development at Westfield Europe, said: “The new additions will build on Westfield Stratford City’s success as the number-one retail, dining and leisure centre in the UK. The residential development is expected to start by the end of 2018.”
The expansion plans come amid concern about the health of the retail sector, with high street brands announcing store closures through company voluntary arrangements.
EG’s Radius Data Exchange revealed recently that 7.1m sq ft of retail space is set to be vacated. And 3.8m sq ft could be added to that through the closure of 100 Marks & Spencer stores announced by the retailer this week.
However, Westfield remains confident about its retail offering, which, the firm says, will benefit from its proximity to offices and housing.
Speaking to EG earlier this week regarding Westfield’s London schemes, Unibail-Rodamco chief executive Christophe Cuvillier said: “The regeneration of Westfield London’s and Stratford City’s surrounding areas presents significant opportunities for growth.
“What is developing in Shepherd’s Bush and Stratford City is fascinating. In Shepherd’s Bush you have more residential, offices, hotels and college campuses. It is becoming so well connected, and there is growth potential there. The same goes for Stratford City. Brexit or no Brexit, these areas will be growing.”
Extensions to proliferate
Further analysis by Radius Data Exchange also shows that extensions to existing schemes will comprise more than 60% of the entire UK retail development pipeline by 2020.
Additions to existing shopping centres will account for almost 5m sq ft over the next three years, with Intu Watford, Intu Lakeside and Westfield London all completing in 2018 and accounting for 1.8m sq ft of this space.
Overall, 21m sq ft is set to be delivered by the end of 2020, and 27.6m is to be delivered sq ft by the end of 2022. Developers are targeting the South East and London, which accommodates one-third of the total pipeline.
In London, a third of all shopping centres in London now have plans for redevelopment. Each of these projects will incorporate a residential element.
In total, 17 shopping centre have plans for a residential offer, and four of these plan to double in size. Another four are in the consultation phase, with applications being prepared.
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